In documents filed today in U.S District Court for the Middle District of North Carolina, Nifong's attorney said his client intends to appeal the judge's decision.
The exonerated players filed their lawsuit after the state attorney general declared them innocent of rape and assault charges.
In March 2006, an exotic dancer claimed she was raped, sodomized and beaten at a house party in Durham.
Nifong is among several defendants named in the lawsuit, alleging he was the leader of a conspiracy to prosecute the players without credible evidence. Nifong was granted automatic protection from the lawsuit until after his bankruptcy proceedings were complete. But, the judge's order reversed that decision.
While he continues his fight for bankruptcy protection, Nifong will be allowed to keep his prized guitar collection. Court documents show he has offered to pay the court $3,500 for two guitars.