Filing of a bankruptcy prevents any lawsuits from being filed or judgments taken against you. If you filed bankruptcy and a lawsuit against you is pending, it can go no further. If a judgment has been taken, its enforcement can go no further. If the judgment has placed a lien on your assets, such as your home, in most cases it stops them from collecting the money, but a separate action is needed in order to remove the lien from title. If lawsuits or judgments are either a threat or a real problem, it is good idea to file a bankruptcy before the judgment is rendered.