Contemplating Bankruptcy

There's no definite answer to your question.  The optimal time to file bankruptcy depends on the specifics of your situation.  I can tell you that the debts you mentioned would likely be dischargeable in a bankruptcy case regardless of whether the case is filed before or after they get a judgment against you in state court. However, once they get a judgment, they can start trying to collect on the judgment, which includes putting a lien against any property you own, garnishing wages, seizing bank accounts, etc.  Most of these are temporary problems, until you file a bankruptcy case, but once they get a lien against property, the lien will remain against that property unless and until it is removed in a bankruptcy case, which may or may not be possible depending on the value of the asset in question, amounts of other liens against it, etc. So it's certainly safer and in the long run less expensive to file bankruptcy before a judgment is entered, but it is still available to you either way.  You should of course have a consultation with a bankruptcy attorney in your area for more information on your situation. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.