QUESTION
At what point can a bankruptcy attorney remove a lien on a house or garnishment on a paycheck?
Asked on Dec 04th, 2013 on Bankruptcy - California
More details to this question:
I have a court cases that I'm involved in for past debt that I have been unable to pay. If the plaintiff get's a judgment against me, how quickly can they garnish our wages/place a lien on our home? If we hire a bankruptcy attorney, can they stop the garnishment/remove the lien by filing for bankruptcy? How quickly? Thank you!
9 ANSWERS
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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How quickly can they garnish your wages after a judgment? Very quickly, as in within a few pay periods! Can a bankruptcy attorney stop this, yes! Can the attorney remove the lien? It depends on your situation. You'll want to get a bankruptcy case filed BEFORE the judgment. The key here is to call a bankruptcy attorney right away for a free consultation. The longer you wait, the more complicated your situation becomes and the more money you could lose.
Answered on Dec 09th, 2013 at 4:59 PM
As long as the garnishment is not for child support or alimony it stops immediately upon a bankruptcy filing. A judgment entered against you becomes a lien on your real estate as soon as it is filed in the County Clerk's Office of any county where you won real estate. In many instances a judicial lien can be avoided, or removed, as part of a bankruptcy filing. To do this as part of your bankruptcy case you would make a motion under 522(f), and if your equity in the house is less than the exemption that claim, the motion should be granted and the lien thereby avoided.
Answered on Dec 09th, 2013 at 4:58 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Do not wait, confer with an attorney now.
Answered on Dec 09th, 2013 at 4:57 PM
If a creditor obtains a judgment against you, they can obtain a writ of garnishment from the court very quickly, often on the same day they obtain the judgment. Then they can serve the writ on your employer and/or bank and you could be garnished very quickly. The creditor can also record the judgment with the county recorder's office and place a lien on any real estate you have in the county. On the day you file a bankruptcy case, the Court imposes an automatic stay that forbids all collection activity and will stop the garnishment immediately. A judgment lien can be removed from your real estate through the bankruptcy process if the property is your residence and you have less than $40,000 of equity in the home (or $50,000 if you are a married couple filing jointly).
Answered on Dec 06th, 2013 at 7:58 PM
Advocacy Attorney serving Boca Raton, FL
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Steven H. Meyer, P.A.
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If you file for bankruptcy, then there is a good chance that the debt will be wiped out. Just the filing of a bankruptcy case will stop any garnishment. You should definitely contact an attorney who is has experience in this area.
Answered on Dec 06th, 2013 at 7:58 PM
Deborah F. Bowinski
A judgment lien can be voided through bankruptcy by way of a separate motion if and to the extent that it interferes with your homestead exemption. A garnishment will be halted the moment a bankruptcy case is filed and the appropriate parties are notified of the filing. These are all things to discuss with your bankruptcy lawyer.
Answered on Dec 06th, 2013 at 7:58 PM
A bankruptcy filing immediately stops a garnishment, while a special court motion is required to remove a lien in a bankruptcy case. Once the state court judgment is rendered, the lien on your house may be automatic and the garnishment can happen in a matter of days. If you believe a judgment against you is inevitable, you should see a bankruptcy attorney before the judgment is filed if possible, so you can avoid either scenario. A bankruptcy filing imposes an automatic stay on any civil collection proceeding, in which case you could avoid the judgment altogether.
Answered on Dec 06th, 2013 at 7:57 PM
A creditor with a court judgment can record a lien just by walking to the recorders office and paying the relatively small fee of $20 or so. They can apply for a writ of garnishment for about $5 and ask local law enforcement to deliver it to your place of employment. Your bankruptcy attorney will need to bring a motion to remove a judgment lien, assuming that lien impairs your homestead rights. The cost to do this can be as much as the bankruptcy itself. If the property isn't eligible for a homestead, you may not be eligible to remove the lien in a Chapter 7. Removing the wage garnishment, in comparison, is a lot easier. Usually a well crafted letter to the appropriate parties will stop the garnishment.
Answered on Dec 06th, 2013 at 7:57 PM
1 Award
IF they obtained a judgment, they already have a lien on the home. The lien happens automatically when the judgment is entered. Also, they can garnish wages the moment the judge signs the judgment. You can file a bankruptcy anytime and the garnishment stops the moment the bankruptcy is filed. In most cases, you can eliminate their judgment lien through the bankruptcy, but there is additional work that a bankruptcy will need to do (which means some additional cost to you).
Answered on Dec 06th, 2013 at 7:57 PM