BANKRUPTCY ATTORNEY | SANTA ANA, CA
Bankruptcy–Avoid Judicial Lien on Homestead Property
Bankruptcy- Chapter 7 and Chapter 13: If you filed a bankruptcy case and are confronted to find that a judicial lien remains on your real property(your residence) , you have a remedy. It is not uncommon for a debtor who owns real property to neglect to avoid the judicial lien during the case. Typically, the discharge is entered by the court and the case is closed. Months or even years after the discharge the debtor goes to sell or refinance the real property to discover that the lien is still enforceable. Fortunately for the debtor, the lien can be avoided under Bankruptcy Code section 522(f)(1), if the lien impairs the debtor’s homestead exemption.
The housing market increased market value in real property over the past years. Many debtors are creating their new life with a fresh start their bankruptcy case. The surprise to sell the real property or to refinance to find the abstract of judgment remains on the real property does not have to derail the plan. The Bankruptcy Court allows a debtor to re open the bankruptcy case and allows the debtor to file the motion to avoid the judicial lien. The lien is avoided by the Bankruptcy Court after a motion and right to a hearing is provided to the creditor. This applies to the real property that the debtor declared as his or her homestead in the bankruptcy case. The homestead exemption applies to the debtor’s residence. This procedure works in Chapter 7 and Chapter 13 cases.
Charles W. Daff is a State Bar Certified Specialist in Bankruptcy with more than 39 years experience. The firm represents consumers and business owners in Chapter 7, Chapter 11, and Chapter 13 bankruptcy. Charles also serves as a Chapter 7 Bankruptcy Trustee in Riverside and San Bernardino Counties currently, as a result of his appointment by the U.S. Department of Justice in 1987.
bankruptcy, chapter 7, 11, 13, personal bankruptcy, foreclosure, re open case,
avoid lien, abstract judgment, refinance, sell,