Can a lien be put into a bankruptcy? 17 Answers as of February 14, 2011

I am planning on filing bankruptcy and a car I had a loan on and was voluntarily repossessed in 2006 put a lien on my house for 8,000 dollars. Can I put that in to the bankruptcy? And on another note if I went to court regarding this in 2008 and they (the plaintiff) never showed how can this be valid?

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Stuart Jon Bierman  Attorney at Law
Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
You can certainly put the $8,000.00 lien onto the list of debts that you want to get rid of and the Court will routinely discharge it if you qualify for bankruptcy. I don't know how the plaintiff can get a judgment when they did not show up for court. You are right, it does appear improper. You could ask the court clerk for information about that. The plaintiff may have filed a subsequent lawsuit or a motion for summary judgment which made the court date unnecessary.
Answer Applies to: New Jersey
Replied: 2/14/2011
Uriarte & Wood, Attorneys at Law
Uriarte & Wood, Attorneys at Law | Robert G. Uriarte
There is a way to remove the lien depending on the equity you have in the property. This is something a lawyer will have to assist you with.
Answer Applies to: California
Replied: 2/14/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
A judgment lien can be avoided in bankruptcy if the lien impairs your homestead exemption. It requires a motion to do that. This is in addition to the normal paper work. You should consult an attorney about this. I do not know what state you are in, but can go the courthouse and look up the case and see if a judgment was entered against you. You can also check the real property records and see if the lien is there.
Answer Applies to: California
Replied: 2/14/2011
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
The Judgment lien on your home will remain on your home and survive the bankruptcy, even though your personal obligation to pay the judgment will be discharged. The only way to remove the lien is to file and win a Motion to Avoid Lien under 11 U.S.C. Section 522(f) while your bankruptcy is still pending. For more information on how to do this, call me.
Answer Applies to: California
Replied: 2/12/2011
William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
If you went to court and Plantiff never showed then they can not have a valid judgment lien on your house. But if you are going to give up the house in the bk then the lien is erased anyway. If you were going to try and keep the house hire a lawyer.
Answer Applies to: Tennessee
Replied: 2/12/2011
    Diana K. Zilko, Attorney at Law
    Diana K. Zilko, Attorney at Law | Diana K. Zilko
    If you house is exempted under the bankruptcy, you can file a motion asking the court to remove the lien from your property.
    Answer Applies to: California
    Replied: 2/11/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    Just because a lien is placed against your property does not make it valid. This type of lien can be avoided in Chapter 13 bankruptcy and your attorney would file a motion with the court to accomplish this.
    Answer Applies to: California
    Replied: 2/11/2011
    Law Office of Larry Webb
    Law Office of Larry Webb | Larry Webb
    You report everything in your bankruptcy schedules, however liens remain after the bankruptcy. You cannot lien strip in a Chapter 7 case.
    Answer Applies to: California
    Replied: 2/11/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    The lien is because a judgment was obtained against you and an "Abstract of Judgment" was issued by the court an recorded in the County Recorder's Office where your house is located. It attaches as a lien on all real property you own in that Count. That is a judicial lien and it can be avoided by filing a motion to avoid judicial lien in your bankruptcy case on the basis that the lien impairs the homeowners exemption to which you are entitled to protect your home equity (or, if you have no equity now, that you would be entitled to protect equity on your residence in the future when hopefully you will have equity). The debt itself will be discharged in bankruptcy but you will want to remove or avoid the lien since it will be a problem in the future to sell or refinance your home.

    In order to put a judicial lien on your home, the car loan company must have obtained a judgment and then an Abstract of Judgment. You cannot file an Abstract of Judgment unless you first have a judgment! The company probably sued you a second time and gotten the judgment or got the court to reset the trial date in the original lawsuit. Maybe you did not get the summons in the second lawsuit or the notice of new trial was lost in the mail, eaten by the dog, etc. You can take a look at the court's file and find out what happened if you really curious. Since you are filing bankruptcy, the best way to resolve the problem is to just include that debt in your bankruptcy petition (as required) and file the motion to avoid judicial lien. It will make your bankruptcy case more expensive but there is no better or cheaper solution to resolve the problem.
    Answer Applies to: California
    Replied: 2/11/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    Yes. I have no idea how could have lost if the other party did not show up.
    Answer Applies to: Alabama
    Replied: 2/11/2011
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    It will depend on many more details and what chapter you will be filing. As far as the validity you will need to see an attorney to review the documents and other details.
    Answer Applies to: New Hampshire
    Replied: 2/11/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    Yes, you may be able to avoid the lien in bankruptcy as impairing exempt property. If you failed to timely respond to the plaintiff's complaint, the court may have entered a "default" judgment against you. Consult with an attorney.
    Answer Applies to: California
    Replied: 2/10/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    You can avoid the lien to the extent that it impairs any equity in your home. You must file a motion to avoid said lien.
    Answer Applies to: California
    Replied: 2/10/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    You can discharge a lien through a specific procedure within a bankruptcy case if it encroaches on your homestead exemption. To determine whether that is possible in your particular circumstances, you should consult an experienced bankruptcy attorney. As to whether the lien is valid if they didn't show up to Court, I would need to know more for what hearing did they not show up?
    Answer Applies to: California
    Replied: 2/10/2011
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