Judgment Lien or Judicial Lien can be avoided through Chapter 13 or 7 Bankruptcy by filing a motion under 11 USC § 522(f). A judgment lien occurs when creditor recorded a judgment (judgment is received at the end of a lawsuit) in the recorder's office of the county where your house or other real estate is located. The judgment lien must impair an exemption that the bankruptcy filer is entitled to. This means that the equity in your home, for example, is not more than the aggregate of the mortgage, other liens and California exemption applicable for the house, if you want to avoid the entire judgment lien through 11 USC § 522(f). Procrastination is the enemy if housing value is on the rise. If the equity in your home or real estate is greater than the total amount of mortgage, other liens and applicable California exemption, then you cannot avoid the entire judgment lien. Nonetheless, you might be able to avoid only part of the judgment lien depending on the amount of equity in the home or real estate.
However, judicial lien secured by child support or alimony cannot be avoided.
A bankruptcy discharge whether it is a Chapter 7 or 13 Bankruptcy is insufficient to avoid the judgment or judicial lien on your home or other real estate. You must file a motion with the Sacramento or Modesto CA Bankruptcy Court. It is very important that you notify your Bankruptcy Attorney of any recorded liens on your home or other real estate so she can take the necessary steps to remove it to the extent it impairs the exemption under 522(f). As such, only lien from debts that predates bankruptcy filing can be avoided.
This discussion of judgment lien avoidance is very cursory. For an in-depth discussion about the application of 522(f) to your case, schedule a consultation with Muoi Chea, an experienced bankruptcy attorney at Sacramento, Stockton, or Fairfield, CA law offices. I have helped consumers and small business owners file for Chapter 7 and 13 Bankruptcy throughout Northern and Central California, including but not limited to Elk Grove, Citrus Heights, Roseville, Vallejo, Woodland, Tracy, Modesto, CA and so on.