Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
The language of the judgment demonstrates the existence of what is known as an "equitable lien." Equitable liens are generally considered secured, because they are intended to provide some measure of restittuion to a lender for the deceitful conduct of a borrower. As suct, the lien would be considered secured, and thus not subject to discharge in bankruptcy.
However, equitable liens are rare (in contrast to "constructive trusts" which accomplish the same goal, but attach directly to a unique misappropriated property), and they are given different treatment by various state and bankruptcy court jurisdictions. This places you somewhat in an uncertain state. However, if you can prove that the underlying actions of the judgment debtor were fraudulent, then it doesn't matter what your right to repayment is called, because it will be nondischargeable under Bankr. Code Sec. 523(a)(2).
That said, I would spend some time researching the U.S. Circuit Court and State court decisions in your jurisdiction to see exactly what sort of treatment is accorded an equitable lien. Because if you can show that your state law would treat an equitable lien as secured, then you don't have to prove fraud, because you have a secured interest, and you can request a lift of the automatic stay and then begin foreclosure proceedings.
Hope this helps.
Terms and Conditions: By your continuing in this conversation with me, or by your clicking “Accept”, you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).