Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi, I'd like to help you with your bankruptcy questions this evening.
Even though you obtained your loan from a Canadian bank, the loan itself was obtained in the U.S., right?
The foreign bank debt would be discharged along with your other unsecured debts when you receive your Chapter 7 discharge.
Obtaining a discharge will stop all collection efforts on this debt in the U.S. However, if you have assets or property in Canada, the Canadian bank may still be able to collect from your Canadian assets.
As to the judicial lien, a bankruptcy discharge voids the underlying judgment, but the discharge does not automatically remove the judicial lien from your property.
You might be able to file a motion to avoid the lien pursuant to Section 522(f) of the Bankruptcy Code.
You can avoid a judgment lien to the extent it impairs your exemptions.
In California, you can choose between two sets of bankruptcy exemptions:
System 1: California Code of Civil Procedure 704.730 - [You can retain equity in property up to the following amounts. These amounts would INCLUDE the judicial lien amount, provided you intend to avoid the judicial lien in your bankruptcy:]
In California’s System 1, single homeowners who are not disabled may exempt up to $75,000 of the equity in their home or other property covered by the homestead exemption. You may exempt up to $100,000 if you live with a family member; $175,000 if you are 65 or older, or physically or mentally disabled; $175,000 if 55 or older, single, and earn a gross annual income under $15,000 or are married and earn a gross annual income under $20,000 and creditors seek to force the sale of your home. If you are married but separated, you may claim the homestead exemption in community property occupied by your spouse.
In California’s System 2, homeowners can exempt up to $22,075 of the equity in their home.
Please let me know if you have any questions, as this area of bankruptcy law is somewhat tricky.
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).