Judgment settlement involves directly negotiating with the creditor who holds the judgment to reach an agreement to pay a portion of the debt or establish a payment plan. Bankruptcy, on the other hand, is a legal process under federal law that can discharge (eliminate) many types of debts, including those with judgments. Kramer Law Firm can advise you on whether negotiation or bankruptcy, or a combination of strategies, is the best approach for your overall financial situation. The bankruptcy sources discuss discharge as a way to eliminate debt.