Legal Question in Bankruptcy in California

Bankruptcy before refinance? (Judgement/lein)

I want to refiance my house. I broke/fractured my back in 94..lost my A1 credit... A judgement/lein was put on for 9,000(2 wells fargo MC and Visa cards) When I called the creditor today, she said it was 15,000 and 4,000/I about died;She said it was interest that was acumulating. I feel like such a failure but I think what they are doing is wrong. I was going to try and pay/negotiate. I want to refiance my house/wipe the slate clean and start over/build up my good credit again. I won't loose my house right? It's all I have. The debts total 15-25000; will the lein be removed? That is my main concern. Should I refiance & THEN file? The creditor already had a lender call me to refiance. I was crying on the phone when she told me what was owed; she said they'd probably give me 15-20% off. I am devastated. The original judgement was 9000. So,Chapter 7? I dont EVER want to loose my house!! ANY help/suggestions are GREATLY appreciated. Do CERTAINLY send my letter to anyone that might be interested in helping me-i'm in CA. I do appreciate any suggestions that YOU have. Thanks for a great web site. I will refer this site to many. [email protected]


Asked on 10/04/01, 6:06 am

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Bankruptcy before refinance? (Judgement/lein)

There is not way to answer your questions without first having a comprehensive consultation. What you should do depends on numerous factors, including the equity you have in your house, value of your other assets, etc. There is a good possibility that you can remove the liens in bankruptcy, but without more information, I cannot tell you for sure. I do practice in California, so if you would like a free consultation, please visit my webpage at http://www.bklaw.com/consult.html for what information you will need to have ready, then give me a call or e-mail to schedule a time. Regards, Mark

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Answered on 11/21/01, 1:47 pm
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Bankruptcy before refinance? (Judgement/lein)

Thanks for your posting. The answer to your question is: it depends. Normally a judgment lien is more difficult to remove than a regular unsecured debt, but it can be done.

No matter what, you should be able to keep your house if you are not in foreclosure, AND if your equity is below the exemption amounts AND if you keep making your payments -- that's the most important thing. Otherwise, you may lose your home -- but not because of bankruptcy, but because of default.

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Answered on 11/21/01, 4:31 pm


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