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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
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Experience:  Better Business Bur 15yrs bankruptcy experience. Chicago Bar
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There is hige equity so trustee sold my home in bankcrupty

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There is hige equity so trustee sold my home in bankcrupty and there is some money to be paid to creditors. Who will get paid first between the IRS lien debt(lien on business only) VS Judgment lien debt(lien on my home that got sold)?
Submitted: 10 months ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 10 months ago.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

When a home is sold, it usually pays off all liens first, so the judgment lien may have been paid.

Terry L. :

If so, the remainder will be paid based on the proof of claims that come in from your creditors.

Terry L. :

If you listed IRS debt in the case, and you have a personal liability, and they file a claim, then they'll get priority treatment, and the remainder of the unsecured debts share pro-rata with any remainder

Terry L. :

let me know if you have any further questions. thanks

Terry L. :

Terry

Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2503
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Terry L. and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 10 months ago.

There is a judgment debt lien attached to my home. If my home get sold at foreclose auction back to the bank at the lone balance amount, what happens to the judgment lien?

Expert:  Terry L. replied 10 months ago.

The trustee would have to pay off the judgment lien if it was a valid recording. Since there was equity, the trustee would not avoid (strip off) the lien.

 

The liens are either paid out or extinguished as part of a foreclosure action had it gone that route.

Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2503
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Terry L. and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 10 months ago.

If my home is worth 1Mill and the first mortgage was 800,000 and the judgment lien is 300,000, will I get 100,000 homestead examption ad marrie couple before paying to judgment lien when the home gets sold at 1mill? Or will the judgment lien holder get paid the equity of 200,000 and no money left for homestead examption?

Expert:  Terry L. replied 10 months ago.
If the trustee sells an asset, the trustee pays off all liens first, (mortgages and judgment liens) and then pays off allowed exemptions to the debtor, and uses the remainder to pay creditors based on the claims filed with the bankruptcy court.

If your numbers hold true, the trustee would not sell, since there would be no equity to pay to the unsecured creditors.

Let me know if you have any other questions.
Thanks
Terry
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2503
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Terry L. and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 10 months ago.

There is a judgment lien attached to our home. The judgment is against me only. Are they allowed to attach a lien on our home that are owned by me and my wife as joint tenant? The judgement is not against my wife.

Customer: replied 9 months ago.

There is a high amount judgment lien on my home. We are about to settle the debt as 5 year payment plan. Can I remove the lien once I start making payments or do I have to wait 5years to finish making payments to remove the lien on my home?

Expert:  Terry L. replied 9 months ago.
The creditor will remove the lien upon satisfaction (once paid off)
So in 5 years they will release their lien.

The creditor can put a lien on your property, but they cannot force a sale if you have right of survivorship with your spouse.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2503
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Terry L. and 2 other Bankruptcy Law Specialists are ready to help you

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