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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12410
Experience:  JD, MBA
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I am in Chapter 7 personal bankruptcy in Maryland and representing

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I am in Chapter 7 personal bankruptcy in Maryland and representing myself pro se.
I am drafting a motion to avoid lien but need some additional guidance. The liens involve my primary residence.
There are 5, possibly 6, creditors with interests in my house.
There are two secured creditors holdong deeds of trust totaling $459,770.41. There is apriority judgement lien by the State of Maryland for$26,517.00.
There are two additional judgment liens for civil cases that were imported from out of State. My brother holds a lien from a slander case in which there was $1 compensatory damages and $100000.00 punitive damages in addition ot $189,000.00 egal fees. There is a lien by my mother's trust for $302,756.50 for misappropriation of funds by me. It is not true, but it is a 'valid judgement'. Sine this involves breach of fiduciaty duty, I assume it is not dishargeable.
My home is worth approximately $700,000.00. I would like to argue that my brother's lien should be partially or completely avoided so that I may realize my exemption.
I know the trust judgement will stay but I am not sure if the lien could be lifted so that I get my exemtion. The trust lien was entered after my brother's lien.
Is my argument to avoid my brother's lien valid and is there any maneuvering I can do with the trust lien? I missed the appeal date in Florida for the trust lien, but can I somehow use the bankruptcy case to reopen my ability to appeal?
Hello and thank you for the opportunity to assist you. My name is XXXXX XXXXX I will do my very best to answer your legal questions.

Unfortunately, once the judgment is final, that's it. The bankruptcy court has no power to alter the judgment. However, a judgment lien can be avoided to the extent that it impairs your exemption. In Maryland, you can exempt about $22k. The non-exempt portion of your house would continue to secure the judgments, however. The exception is if the lien was filed within the last 90 days. If so, then you can avoid it completely because the lien within 90 days of your bankruptcy filing would be considered a preference, and the bankruptcy trustee would not allow that. But, you must also keep in mind that any equity which is not exempt is used by the trustee to repay unsecured creditors. So, the botXXXXX XXXXXne is that the judgment creditors would get your equity (less $22k) regardless of whether or not they are avoided.

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied. Also, your positive feedback is greatly appreciated. Thank you for using our service!

If you would like to direct additional legal questions to me in the future, then please type "To TJ, Esq." in the subject line of your question.
Customer: replied 4 years ago.

Neither of my questions were really answered.

1. Does the math support a lien avoidance with regard to the two judgement creditors?

2. The second judgement lien can be construed as 'fraud' and is therefore not dischargeaable. Can I ask that I get my homstead exemption before

the house equity goes to this creditor?

3. Do the judgement liens get paid in the order they were entered as liens on the property? Is it possible to get the first judgement lien off so that the remaining home equity preferentially goes to the nondischargeable second judgement lien? Is it possible to get the first judgement lien off so the remaining

Hello again. 

The math supports a lien avoidance up to the amount of your exemption only. The exemption in Maryland is about $22k.

Yes,  you would definitely get your exempt equity before the judgment creditors would be paid,  even with regard to the fraud. 

Yes,  liens are paid in the order that they are recorded. Accordingly, I'm sorry to say that you would not be able to get the second judgment lien paid from the equity before the first judgment lien. 

Does that answer your questions? Please let me know if you need clarification. 
TJ, Esq. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.

To TJ;I recently found out that one of my defunct businesses, a Maryland S corp and PA, owes a bout 60k in 2012 taxes to the IRS. This will immediately become a personal liability becuase of the nature of the


corporation. I know that this debt is not dischargeable and its existence will seriously impede my "fresh start". Is it possible to ask that the IRS be paid out of the proceeds from the house before the two judgement liens?

Hello again.

I'm sorry to say that the IRS would only be paid before the judgment liens if the IRS were to record a lien first. If the judgment liens were recorded first, then they will be paid first. Unfortunately, the fact that your "fresh start" is impeded makes no difference. I wish that I had better news for you.
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