Judgement debt discharged in BK...but attorney wants $10,500 to release judgement!

[SunshineGal]

I think I found my answer...is it because the BK law supercedes state law and code 524(a)?

[despritfreya]

. . .now I'm confused. A judgment automatically attaches to all real property owned now or in the future, providing the judgment lien is still valid. It is my understanding the lien remains, so how do you keep it from attaching to property owned in the future if you don't vacate the lien?

Since the underlying debt that supported the judgment (and the lien) is no longer enforceable - and, in fact based, upon IBroke's observation of the language of 541, the judgment is void, the lien cannot attach to after acquired property since there is no value to support it.

Remember, the lien attached to property owned by the debtor before the bk was filed. The lien on that property may have passed through the bk unaffected. The judgment however has no enforcement powers after the entry of the discharge therefore it makes sense the the judgment lien cannot attach to after acquired property.

Convoluted isn't it?

Des.

[SunshineGal]

Thank you Des! And yeah, convoluted says it all, lol.

[PHXDWTN]

I wanted to update this post and see if I can get any additional advice and clarification.

I filed a Motion to Vacate Judgment 2 weeks ago on the basis that "The underlying debt that created the judgment has been discharged through Chapter 7 bankruptcy." Today i received a "Response to Defendant's Motion to Vacate Judgment" from the Plaintiff's attorney. It stated that they oppose the motion to vacate because...

"The entry of judgment preceded the dates of bankruptcy filing and discharge, and therefore there is no legal cause to vacate the judgment, even though the underlying debt was discharged. The status and effect of property issued and recorder judgment is a matter of negotiation between the parties."

Is there anything I can respond back with or is it a shut case at this point?

Also, this has been explained before but I am looking for more clarification. Can the attorney renew the judgment?
In Arizona, there is a 5 year timeline attached to judgments but that can be renewed indefinitely if the plaintiff applies for it. Is this true even if the debt associated with that judgment has been discharged?

Thanks for any help.