It is a myth that you cannot file for bankruptcy once the creditors received a judgment in California.
The debt underlying the judgment remains just as dischargeable as it was before the case was filed. A judgment does not make a debt not dischargeable. For example, if a creditor for a credit card obtained a judgment, the credit card debt remains just as dischargeable as it was before the lawsuit was filed. However, if the credit card debt was accumulated through fraud, then that debt is not dischargeable before and after the judgment was obtained.
Whether a debt is dischargeable depends on the nature of the debt not whether the creditor obtained a judgment.
Here are some examples of debts that are not dischargeable: child support, alimony, debts incurred through fraud, fines, DUI, damages caused by intentional act like vandalism or DUI.
However, you should not delay in consulting with a bankruptcy attorney about your options in Chapter 7 or Chapter 13 Bankruptcy. Procrastination will just give creditors time to take further steps to get an order for a levy on bank accounts or wage garnishment or record an abstract of judgment on your real estate, thus creating a judgment lien or judicial lien on your real estate. Creditors can also create a judgment lien on personal property located in the state of California by filing a notice of judgment with the California Secretary of State in Sacramento California.
Sometimes a lien cannot be avoided in bankruptcy. In this case, you should have filed your bankruptcy case before creditor has time to file a lien against your real estate or personal property. Another reason why you should not procrastinate in consulting a Bankruptcy Attorney.