A judgment lien is a legal claim against a piece of property that permits the creditor to sell such property if the debt remains unpaid. These judgments can sometimes stay on the property even after it has been sold, but they are subject to being removed by a court of law or state agency. This generally applies when the person who was responsible for paying off the debt no longer owns such property and has passed away. In certain cases, there may be other factors that allow for the removal of a judgment lien from the real estate before it becomes subject to sale.
If you are faced with any debt issue, the best thing you can do is to contact the creditors and try to work something out. You should try to work out a settlement deal with them, but if it does not work, then there is a law that might help you. This law applies only when you have already filed for Bankruptcy – Liens and does not apply when you are just about to file for bankruptcy, as your creditors may not agree with your decision. Bankruptcy is a protection that may be acquired to protect the interests of you and your family by allowing you a chance to recover financially. When filing for bankruptcy, there is a waiting period or a moratorium period before your creditors can start taking action against you.
What is a judgment lien?
A judgment lien is an order of the court against a debtor by which he is ordered to pay money or personal property to the creditor. In turn, the creditor gets a lien on this property in order to enforce his claim. The judgment lien can be placed on any property as long as it is tangible (not real) and enumerable (can be taken from you). The place and manner of enforcement vary from state to state. A Judgment Lien is a legal right of a plaintiff to have a property in support of his claim. When the court issues a judgment against you, and the defendant fails to pay this money, the creditor may get a judgment lien against your property so that he can use it to recover the money awarded by the court and, if necessary, sell your property in order to recover his lost money. Judgment liens can be placed on the personal and real property of an individual.
Due to the fact that there are many types of judgments and the ways these can be enforced, there are different ways in which a creditor can get a judgment lien against real property. In most states, a court may issue a judgment but not take any action to enforce it until after two years from the date of issuance. This is the standard moratorium (waiting period). In some states, there is no waiting period, and you can be put on your property if you refuse to pay. Some judgments have a unique lien.
What happens to judgment liens in bankruptcy?
If the debtor does not file for bankruptcy or does not appear on the date of filing for bankruptcy, or if there is no filing, the creditor can still put liens against your property. However, it is unlikely that a lien can be placed on your property until after you have filed for Chapter 7 or Chapter 13 bankruptcy. Therefore if you are facing debt issues and are concerned about having a judgment placed against your property, do everything you can to file for Chapter 13 bankruptcy as soon as possible. The sooner you file for Chapter 13 bankruptcy, the more protection you will have against judgment liens. If a creditor has a valid judgment and has not received payment, the creditor may be able to place a judgment lien against your property. In order to do this, the creditor must send you a notice that he intends to sell your property at a public auction if his money is not paid in time.
Who can help me eliminate liens in bankruptcy?
If you have not filed for bankruptcy yet, you may want to contact an experienced attorney and file for bankruptcy immediately. If you have already filed for bankruptcy, you may want to get rid of the liens on your property. Only a court can remove a judgment lien from your property. A chapter 7 trustee or an attorney can represent you as they will want to sell your property so that they can recover the money awarded by the court. The trustee or attorney will file a motion with the court in order to ask for permission to sell and remove their liens from your property.
Conclusion:
If you are facing judgment liens, you should consult an experienced attorney to know your options. No one wants to lose their property because of debt issues. However, it appears that bankruptcy may be one avenue through which judgment liens can be removed from a person’s property before the creditor is allowed to sell such property.
