Guidance needed for handling creditor with judgement lein

[holding on]

Hello all,

I've left this request for my Chapter 13 lawyer but have found out that many times I need to research myself to get all the info.

I'm hoping someone can point me to a website or repository of info pertaining to how judgement liens are handled related to secured claims. I have a creditor whose claim is pushing my plan into underfunded territory because I listed it as unsecured, and they have claimed it as secured. They have only claimed it as secured because they received a judgment and I own a home in the same county as the judgement was filed.

I have read several conflicting thoughts here on the subject, but I'm mainly trying to find out if they can make this claim as secured, or if there a process where I can make the claim unsecured.

Thanks for any info!

[queenbee]

did they docket the judgment with the court? if they did that means they put a lien on your real estate...if it is not docketed then they did not and it is not secure..

[HHM]

The answer somewhat depends on your state law, but generally, If they have filed the judgment with the county recorders office in which the real estate is located, then they have a valid security interest. In a chapter 13, if there is no equity that actually covers the lien (i.e the home is worth less than is owed on your mortgages), then the lien can be striped.

[holding on]

I did find out that the creditor filed the judgement in my county, which means its a lein, which means its secured. What ticks me off is before filing I gave my lawyer the lien and noted it was from a judgement, but my plan was STILL drawn up as noting those funds as unsecured.

Because of this my plan is underfunded, even though it was confirmed.