Legal Question in Credit and Debt Law in California

It depends entirely on the priority of the liens. If the bank loan is older than the judgment lien, a foreclosure of the bank lien would wipe out the judgment lien. However if you have equity in the property and he house sold for more than the bank loan, then the next liens in line would be paid too. So without running the numbers there is no way to say if this is a meaningful threat or not. You haven't asked, but I have to suggest that you consider bankruptcy. Although the voluntary lien of the bank loan would remain, there is a good chance of wiping out the judgment lien if you really can't afford to pay it along with all your other debts and obligations.

Bankruptcy can comprehensively resolve the situation and permits avoidance (removal) of (de facto unsecured) judicial liens, which impair bankruptcy exemptions. Downplaying the usefulness of the lien doesn't preclude the creditor from levying a bank account or obtaining a wage garnishment order (to snatch one-quarter of your pay). Medical bills are artificially inflated to slam and discriminate against uninsured or under-insured patients. That gives the NOT not-for-profit medical establishment the leverage to offer illusory "discounts," which may amount to simply reducing costs in line with what insurers pay.

This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn�t address all facts & implications of the question; it�s general info, not legal advice to be relied upon and exceptions may apply. It creates no attorney-client relationship; it may be pertinent only to CA and/or its Southern District Bankruptcy Court in San Diego. It�s independent of other answers. It may be time sensitive, as in past the �Use by� date: laws and case law change. Hire a bankruptcy lawyer before acting or refraining from bankruptcy or other legal action.