QUESTION
What can be done on judgment lien avoidance upon case dismissal?
Asked on Aug 04th, 2017 on Bankruptcy - Wisconsin
More details to this question:
I filed bankruptcy in 2009 where I received a 11 U.S.C. Sec. 522(f) lien avoidance conditioned upon case discharge. The case was dismissed in 2012 with one year left and all of our unsecured debt paid besides our student loans which were only added to remain in bankruptcy the required 5 years. Are we still liable for this lien? As far as I know, the creditor has taken no further steps to protect its interest. I am now trying to sell said property and am trying to figure out my responsibility to this creditor with no response from the attorney who handled the judgment.
4 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
Judgment liens become dormant after five years with no action. If the creditor has taken no action the judgment is no longer valid.
Answered on Oct 23rd, 2017 at 8:29 AM
1 Award
The lien is still a valid lien on the property since you did not complete the case. If there is less than $40,000 equity in the property ($50,000 for a married couple) you can file a motion to void the lien in state court at this time.
Answered on Oct 18th, 2017 at 5:38 PM
Bankruptcy Attorney serving Madison, WI
at
Richard B. Jacobson & Associates, LLC
Update Your Profile
If you live in Wisconsin you can apply to state court to 'satisfy' the lien of a judgment where the underlying debt was discharged in bankruptcy. If it has not been discharged, you can still seek to convince the creditor that its lien has no value (because it comes after your homestead exemption) You could sue for a declaratory judgment that the lien has no value, and have the judgment recorded in the real estate records.
Answered on Oct 18th, 2017 at 5:38 PM
Yes, you are still liable.
Answered on Oct 18th, 2017 at 5:38 PM