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Ask WALLSTREETESQ Your Own Question
WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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There is a judgment against my home. I am currently in bankruptcy.

Resolved Question:

There is a judgment against my home. I am currently in bankruptcy. When the debt is discharged, will the judgment also be removed from the home?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 4 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification. 

WALLSTREETESQ :

The judgment if it has not been converted to a lien will be discharged in a chapter 7 bankruptcy.

WALLSTREETESQ :

If the judgment is from an unsecured creditor, such as a credit card, and it has been converted to a lien, you may have to file a motion to remove the lien from your home.

Customer:

It is from a credit card. So I will have to file a motion then?

WALLSTREETESQ :

Chapter 7 debtors and Chapter 13 debtors can avoid a judicial or nonpurchase money lien. The debtor should express his intent to avoid the lien in either the Chapter 7 Statement of Intention or the Chapter 13 Plan. The motion to avoid a lien needs to cite the debtor's right to eliminate the judicial lien under 11 U.S.C. §522 of the Bankruptcy Code. The lien can only be avoided to the extent that it hinders the debtor from claiming the exemption's value. File the motion to avoid a lien with the bankruptcy court. Send copies of the motion to the interested parties such as the bankruptcy trustee and the creditor with the lien.

WALLSTREETESQ :

Do you have any equity in the home?

WALLSTREETESQ :

If you have no equity, then their will be no problem getting the lien removed,

WALLSTREETESQ :

The lien can be removed if it is secured on exempt assets so if the home does have value, but it is exempt under you State homestead exemption, or has no value, you can have it removed.

Customer:

ok

Customer:

so if it...oh

Customer:

never mind

Customer:

what if I am discharging the debt?

WALLSTREETESQ :

The debt would be discharged, unless they put a lien on your property.

Customer:

The lien is there. The home is owned with my ex wife. I am not reaffirming the debt. My wife is not in bankruptcy with me.

WALLSTREETESQ :

Then the debt would be discharged to you, but would remain on the home unless you file a motion to avoid the lien.

Customer:

And I should not have an issue avoiding it with the motion?

WALLSTREETESQ :

Not unless the property has significant value that is not exempt.

Customer:

okay thanks.

WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you