questions about house and judgements

[waterman]

Hi,


I am about to declare chapter 7 and need some info. Chase and another creditor just got a Judgement for a business credit cards that I personally guaranteed. If they put a lien on my house will it get discharged during bankruptcy? I plan to reaffirm my house.


Thanks.

[drowning123]

The judgment will stay on your credit report for 7 years. The judgment on the lien to your house will stay for as long as the law allows, sometimes up to 20 years, unless you file a motion to vacate and receive an order from a judge for the motion to be vacated. I'm sure others will chime in.

[tcreegan]

Hi waterman,

If they have not recorded/certified/whatever legal process they have to do in your state/ then get your BK notice w/ case# and file date and ASAP serve a copy on the court that ordered the judgement and on the attorny(s) for the plaintiff(s) This is to stop any collection efforts they may have started.

Once you get your discharge, attach a copy to a motion to vacate judgement and file it with the judgement court. (send it to plaintiffs counsel too)

Now your case is out of my league: what happens to the lien when the underlying debt is discharged and court order was vacated? I would think the lien would fall off, but I am not sure.....anyone else?

Tom in Colo

[SunshineGal]

If the lien is actually vacated than there is nothing to attach to the title. At worst, if you were to sell or refinance you would have to show a copy of the order to vacate. Now, if you don't vacate the judgment, then you can have problems as in order to get a clear title the judgment has to be satisfied, or, you have to go back and get the lien removed through the courts.

[drowning123]

Since I surrendered my house, I shouldn't be concerned about the lien, correct? I should be more concerned about getting the judgment removed from my credit report, correct?

[SunshineGal]

Hi Drowning,

Get the lien vacated, then it won't come back to bite you. A judgment gets recorded in official records of the county you are living in and automatically attaches to whatever real property you own, either now, or in the future.

[drowning123]

Thanks, sunshine. I'm working on it. Motion to vacate a judgment is the same as getting the lien vacated, correct? Just making sure.

[SunshineGal]

Hi Downing,

Yes - it is the same. Or should I say it will be once the judge signs off on it.

[drowning123]

Thanks!