If a business has a large lawsuit judgment against them can they declare bankruptcy and wipe it out?

Litigation concering business' is handled differently than personal lawsuits or BK. Lawsuit/judments against a business can sometimes be dismissed in a BK discharge. If the judgment pertains to personal injury, civil rights violation, etc. it is not ordinarily dischargeable in BK proceedings.

And it needs to be recognized that a company (or a person) does not go Bankrupt on a specific thing. If the company has assets they must be used to pay creditors before any debts are discharged....and to the degree that they can't raise cash (through sales of assets, pats of the biz, even getting new loans) to pay off the debt, the Stockholders are the first to lose.

While the court may ultimately determine who gets what...in a business situation there is frequently a group of creditors that try and work things out for the court approval. The court must follow certain rules, with certain rights of claim taking priority over others (like payroll over suppliers), and may allow one class a higher payback than another (again like payroll, normally paid 100% up to very high levels and where suppliers may get much less)....but really everyone of a class is treated equally. So, generally you would get paid something and they really can't do it to avoid paying you....without having many others they don't pay equally, and stockholders/owners who lose a whole lot, also.

Basically, more commonly than not, for a Company to go bankrupt and escape paying debt, the Stock in the company becomes owned (the company becomes owned or controlled), by the people they didn't pay. (They just get paid in ownership of stock instead of money).

Business bankruptcy, of course depending on the size of the business, can cost astounding amounts of money in itself.