For the purposes of bankruptcy, judgments obtained through arbitration are treated the same as judgments obtained through the more traditional court process.
Judgments obtained either through an arbitration or a court proceeding prior to the filing of a bankruptcy petition are usually discharged and the debtor will have no obligation to pay the judgment.
However, some judgments, whether obtained through a court or arbitration process are not discharged through the bankruptcy case:
· Judgments for debts or obligations incurred by fraud, including embezzlement or theft;
· Judgments arising from injuries based on willful and malicious conduct of the debtor;
· Judgments for spousal or child support obligations;
· Judgments resulting from injury or death caused by the debtor while operating a motor vehicle while intoxicated;
· Criminal fines and restitution as well as penalties owed to governmental entities.
The above listing is not a complete listing of non-dischargeable debts, merely those most commonly arising from a court or arbitration proceeding.
For details on self-help pro se bankruptcy, see Standard Legal’s Bankruptcy legal forms software page.