Notice of Judgment Lien - what does it mean?

[JackFrostMI]

I've been sued by Chase & they have a judgment against me as of a few months ago. Now in the past week they have attached my bank accounts (-0- bal on all) and today I received a Notice of Judgment Lien that was filed with the local register of deeds.

What exactly does this mean?? Can they do something with our home?? My husband & I are both on the mortgage - but I'm the only one that will be filing BK - just not sure when that will be. I'm unemployed - no money except unemployment & I'm $30K in debt that I haven't paid on in months. I'm worried that if I file BK too soon & I'm still unemployed that we might end up with medical debts because we are about to lose our health insurance because our reduced COBRA payments are ended (it's been 15 months I've been unemployed).

I just don't know what to do - file or wait to file?? Also worried about what else these judgments can do - I don't want any of my mess to affect my husband.

[Fallonedward]

I've been sued by Chase & they have a judgment against me as of a few months ago. Now in the past week they have attached my bank accounts (-0- bal on all) and today I received a Notice of Judgment Lien that was filed with the local register of deeds.

What exactly does this mean?? Can they do something with our home?? My husband & I are both on the mortgage - but I'm the only one that will be filing BK - just not sure when that will be. I'm unemployed - no money except unemployment & I'm $30K in debt that I haven't paid on in months. I'm worried that if I file BK too soon & I'm still unemployed that we might end up with medical debts because we are about to lose our health insurance because our reduced COBRA payments are ended (it's been 15 months I've been unemployed).

I just don't know what to do - file or wait to file?? Also worried about what else these judgments can do - I don't want any of my mess to affect my husband.

I see your in MI as well, this is a tough state to find a job. I would see if you could get a free consult with an attorney and ask the question to them. good luck

[frogger]

Normally, when a lien is filed, it just sits out there in limbo until the property is sold. If the property is sold, the attorney doing the closing and the title search will find the lien. Part of selling the property would be to pay the lien off at the time it is sold.

Probably not a big deal to you, but it is a very common thing to do when you have a judgment against a property owner.

BK can solve those problems.

[catleg]

By recording the judgment, it will show up in any title search, meaning you can't sell the property (or any other property in your state) w/o paying them off.

In a bankruptcy, if you have no equity or your equity is entirely protected by BK exemptions, you can have the lien removed as it "impairs your exemptions".

In some cases (e.g. NJ) a judgment lienholder has the right to start a foreclosure action, however, with the real estate market like it is, this is very rare.

Also, in NJ for example, a creditor is required to make a diligent effort to collect on the judgment against personal property before docketing (recording) a lien against real estate.

So it *might* mean they will ease off collecting now that they haven't gotten anything.

But they can come back at anytime for a wage garnishment or try to levy your personal property (bank accounts mainly).

[ryan]

Just to understand, when they levied the bank accts, there was a zero balance THEN, or there is a nothing NOW? ...hopefully the former.

[JackFrostMI]

Just to understand, when they levied the bank accts, there was a zero balance THEN, or there is a nothing NOW? ...hopefully the former.

Then & NOW - I was joint on the accounts with my husband. Money that was in the accounts was my unemployment checks (direct deposited) and his paychecks. I switched my unemployment to a debit card & my husband opened up new accounts at a different bank in his name only. I received a copy of the writ of garnishment/seizure from my bank the other day - they responded to it saying there is "no money available" to the notice.

We are behind on our property taxes $5K & we do not want to lose the house - our house payment is VERY managable and with my unemployment we are able to squeak by making minimum payments on our joint loans & paying the necessities with nothing left over. I have just enough in my 401K to pay the property taxes so we don't lose the house - but I'm afraid if I took that money out what would it do to my filing BK.