A Chapter 13 can only discharge up to around $349,000 of unsecured debt, but a Chapter 7 can discharge an unlimited amount of debt, assuming of course the nature of the debt is dischargeable. So, a collections lawsuit for $250,000 can normally be discharged, whereas a lawsuit for fraud or driving while intoxicated would not normally be dischargeable in bankruptcy.
I suggest talking to a bankruptcy attorney in your area so they can confirm that the judgment is not for a non-dischargeable type of debt since trying to pay back $250,000 might be impossible. IRA's are normally safe in bankruptcy unless they were funded within the year before the bankruptcy case is filed. Each state also allows one to protect a certain amount of equity in real estate, personal property like cars, etc also so those items are often completely safe in bankruptcy.
I hope this helps and a positive feedback is always appreciated if this was useful to you.
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