Will I be liable for this judgment when bankruptcy is over? 12 Answers as of May 06, 2015

A judgement was filed on my ex-husband for a business loan. I was on judgement. I never signed for that loan. He put our home as collateral. I divorced him and filed Chapter 7 all in 2006. This judgement keeps getting assigned, last time was 6/14, since this was listed on my chapter 7, schedule F. My ex started a Chapter 11 or 13, not sure which and just quit paying on it. I owned the home before marriage and was awarded it back in my divorce. My attorneys never advised me on anything about a judgement being reassigned or what could happen after bankruptcy.

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Gleissner Law Firm, LLC | Luke Gleissner
Just to make sure we have the facts straight, (a) a judgment was entered against you prior to 2006, and (b) you filed bankruptcy in 2006 and listed the judgment creditor as an unsecured creditor. Under the bankruptcy code, you are able to remove judgement from your residence if the amount of the mortgage on your home, plus your homestead exemptions is greater than the value of your home. To remove the judgment your bankruptcy attorney would have filed a motion. Did your bankruptcy attorney file such a motion? As it relates to the judgment, in South Carolina, judgments are only effective for 10 years. There is no procedure for extending it beyond the 10 years. If the judgment was entered prior to 2006, you may just want to wait until the 10 years has lapsed.
Answer Applies to: South Carolina
Replied: 5/6/2015
John W. Lee, P.C.
John W. Lee, P.C. | John W. Lee
If the judgment was obtained against you and became a lien against your house, then the bankruptcy will most likely not strip the lien from the real estate. Bankruptcy will discharge your legal obligation to pay the debt, however, unless you qualify for a lien strip, the lien will remain on your house after bankruptcy. This means that even though the Judgment creditor can not take collection action against you after bankruptcy, he can still pursue collection action against the real estate, including foreclosure. Your divorce would not have removed a judgment lien against your house. You should consult with an experienced local bankruptcy attorney and ask them if you qualify for a lien strip as to this judgment creditor.
Answer Applies to: Virginia
Replied: 5/4/2015
Ronald K. Nims LLC | Ronald K. Nims
You aren't personally liable on the loan because you never signed on it. However, if your husband was sole owner of the house, the lender might have a lien on the house. You should consult a lawyer to check that out.
Answer Applies to: Ohio
Replied: 5/4/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
There is not enough information here to be able to offer reliable answers. You don't state when the lawsuit took place, or whether the lawsuit was against only your ex-husband or against you also. You don't state when the judgment was recorded as a lien against your property or whether you took any action in your bankruptcy case to void that judgment lien. You don't say whether your home was ever put into joint name with your ex-husband or whether it remained titled in your name only the entire time. If the judgment was recorded as a lien against your property before your bankruptcy case was filed then the lien still exists today. Listing the debt on Schedule F served to discharge your legal obligation to pay the debt, but it did nothing to interfere with the lien on the property. If the lien was recorded after your bankruptcy case was filed, and if the property was in your name only at that time, then you may be able to get the lien released by contacting the lawyers for the creditor.
Answer Applies to: Colorado
Replied: 5/1/2015
Stephens Gourley & Bywater | David A. Stephens
If the judgment predated your bankruptcy filing, your personal liability on the judgment was discharged. However, if the home was collateral, the creditor may still have rights to collect the judgment against the home. This right depends on a lot of things, such as the one action rule and the homestead exemption in your state.
Answer Applies to: Nevada
Replied: 5/1/2015
    Danville Law Group | Scott Jordan
    When was the judgment obtained?
    Answer Applies to: California
    Replied: 4/30/2015
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    I'm not sure I understand the facts. However, if the loan (now judgment) was on your BK filing in 2006, you are okay. If the debt was not listed but incurred before you filed in 2006, you can amend your schedules to include the debt. Talk with an experienced BK lawyer face to face. Any lawyer worth their weight in salt is going to charge you for the consultation. Good luck!
    Answer Applies to: Colorado
    Replied: 4/30/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Your statement of facts doesn't add up and I would suggest taking your documents to an experienced bankruptcy attorney to review. Just filing a bankruptcy does not remove a judgment that has attached to real estate. It might be possible to reopen your bankruptcy to avoid this judgment lien, but I am not sure whether or not the facts will allow you to do this.
    Answer Applies to: Nevada
    Replied: 4/30/2015
    Thomas Vogele & Associates, APC | Thomas A. Vogele
    Mortgage liens follow the property and must be reconveyed or they remain on title forever. If, as you say, the property was your separate property when you got married and was awarded to you in the divorce, you should make sure your divorce lawyer followed through and cleared title then. If not, even though the obligation on the loan have been discharged, the lien remains and you'll have to retain a skilled bankruptcy attorney to reopen your case to try and strip the lien. Its not an easy process, nor is it cheap, but that's the only way to remove the lien. Good luck.
    Answer Applies to: California
    Replied: 4/30/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Your bankruptcy removes you from personal liability but if the judgment was also a lien on the house and you did not avoid it in the bankruptcy then it would remain attached to the house.
    Answer Applies to: New York
    Replied: 4/30/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    It sounds like your lawyers were not doing all they should. If the mortgage note was not reaffirmed during the bankruptcy, and it was in existence at the time you filed 9 years ago, then you almost certainly discharged your obligation to pay it. It seems to me that the assignees of the judgment were basically receiving confederate money, unless the home has very large equity. They cannot collect on the debt, and it is unlikely that their judgment lien is worth anything. You might want to ask your lawyers from your Ch. 7 case to write the creditor. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 4/30/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    You should ask your attorneys, they have the details and history. Generally the note is discharged, the be lien on the property is not.
    Answer Applies to: Michigan
    Replied: 4/30/2015
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