Help! Judgement Lien Question

[lsditter]

We are filing for bankruptcy next Friday, chapter 7. Citifinancial put a judgement against us and won by default as we did not make an appearance. Anyway, we just received a letter from Citifinancial that a lien has been issued against us, which is no surprise. However, and this may sound ignorant, but a lien against what? Don't they usually tell you whether it is against your real property, personal property, wages, etc? If I don't know how will I know how to "strip the lien" in the bankruptcy?

[albacore44]

ohh those Pirates again. Most likely they will put a Lein against your house. You can go to your counties website, controlers section, and look up your name. It will list all documents filed against your name. After you Ch-7 discharged your attorney can make a motion to remove the Lien. it will cost you a little extra money.

[treehugger1]

Go to the courthouse and ask to see your case file. See what the judgment states.

[catleg]

Do you have any real estate? A judgment has to be docketed (at least here in NJ) to become effective towards any real property in the state.

If not then it's kind of a meaningless distinction, since with respect to any other kind of property (cars, wages, bank accounts) they normally try to take the property and liquidate it. The theory, until the current property collapse, was that you would pay them off when you happily went to sell your appreciated property and move onto a bigger house. Doesn't work anymore, just goes to show their whole collections model is in shambles.

[BKDefender]

After you file BK next week, your attorney or trustee can file to vacate the lien as either an impairment of your allowed exemptions in your home, or because it was an involuntary transfer of rights in your property to pay an unsecured creditor within the past 90 days (a section 547 preference.)

Either way, it'll get vacated and go away.

--William

[BrokeIn2010]

Guess this is as good a thread as any to ask this:

We're expecting our second child, and thanks to Convenant health screwing up the insuance filing (story for another thread) and Cap 1 ($5000) and BoA ($2000) jacking interest rates and fees through the roof, it looks like we're heading for another Ch. 7 or Ch. 13.

My wife's co-workers have got her scared that BoA will put a lien on the house (paid for, single-wide trailer, 30 years old on a unperkable piece of ground) and put me, her, and the kids out on the street without a house to live in.

I thought when they put a lien on a place, I didn't think they actually sold it and evicted you, just barred you from selling till you paid back the money.

Plus her boss told her that if she gets a wage garnishment that the company (not going to give the name, just a big Pharmacy chain) would fire her on "loss prevention" issues.

Again, can they do that legally?

[forgotten]

My wife's co-workers have got her scared that BoA will put a lien on the house (paid for, single-wide trailer, 30 years old on a unperkable piece of ground) and put me, her, and the kids out on the street without a house to live in.

I thought when they put a lien on a place, I didn't think they actually sold it and evicted you, just barred you from selling till you paid back the money.

Plus her boss told her that if she gets a wage garnishment that the company (not going to give the name, just a big Pharmacy chain) would fire her on "loss prevention" issues.

Again, can they do that legally?

If BoA were to sue and obtain a judegement, they could place a lien on the property. Honestly, over $2000 they aren't likely to try and place a lien on anything. I would be surprised if they even sue to tell you the truth.... If they do, I would expect it to be after years of collection efforts.

They can not force the sale from a judgement lien, they would be paid from the sale of the property if you ever sell.

It is against federal law to fire someone as a result of receiving a single wage garnishment. Unfortionatly that protection is gone if they receive multiple wage garnishments requests from seperate judgements.

[BrokeIn2010]

If BoA were to sue and obtain a judegement, they could place a lien on the property. Honestly, over $2000 they aren't likely to try and place a lien on anything. I would be surprised if they even sue to tell you the truth.... If they do, I would expect it to be after years of collection efforts.

They can not force the sale from a judgement lien, they would be paid from the sale of the property if you ever sell.

It is against federal law to fire someone as a result of receiving a single wage garnishment. Unfortionatly that protection is gone if they receive multiple wage garnishments requests from seperate judgements.

Okay, so they don't put you out on the street then, they-- more or less-- make you "buy back" your house or if we try to sell and move they get dibs on the money.

The wage garnishment thing, as I understand, would make her a "security risk" and a "loss prevention" issue due to the increased risk of employee theft do to the financial situation. Frankly, I think it'd be asking for a lawsuit if they did it that way.

[forgotten]

The wage garnishment thing, as I understand, would make her a "security risk" and a "loss prevention" issue due to the increased risk of employee theft do to the financial situation.

Perhaps she better start stealing from the company so you can pay off your debts. That way she won't be a security risk because you don't have any financial issues because of all the extra money from stealing.

Check to see if the company turned a profit every quarter for the last 2 years... if not, better ask for a years salary in advance since because of their financial situation they may steal your check from you.

It all makes as much sense as using that as an argument to fire someone.

[GoingDown]

I'm surprised they were this honest about their firing policy.

Usually, they find some other reason to fire you once you have a garnishment-- it's a lot of extra paperwork for them.

In this case, you should file BK as soon as you possibly can to avoid the garnishment, since they have already indicated they would fire you over it.

[junker]

[QUOTE=forgotten;378773]If BoA were to sue and obtain a judegement, they could place a lien on the property. Honestly, over $2000 they aren't likely to try and place a lien on anything. I would be surprised if they even sue to tell you the truth.... If they do, I would expect it to be after years of collection efforts.

mbna which is now part of b of a sued me within 3 years of defaulting for about 3000, luckily for me i had my house on market and the day they served papers i sold the house, they didnt know this and proceeded to get abstract judgment on the house already sold. tooo late..i had bought a house in florida. and it took almost 3 years for them to find me.they threatened on domesticating judgment there, i also had THAT house on market. i told them i was going bankrupt, and house would be foreclosed..and offered low payment to them to buy time.. THAT house sold before they could domesticate and am now back in ca.....probably the first thing they will do.as they did with me is do a asset search and find out if you have equity in the house beyond your homestead exemption....now days that is rare..