Legal Question in Bankruptcy in California
Discharge of judgement that resulted in lien against real property
A judgement was entered as the result of a breach of contract suit. During the subsequent Chapter 7 prceedings, our attorney listed the debt along with all unsecured creditors. Two years later we were closing on a refinance of our primary residence when the Title company informed us that there was $1400 lien against the property which needed to be paid out through escrow. Was there a motion that should have been filed to remove this lien through bankruptcy?
1 Answer from Attorneys
Re: Discharge of judgement that resulted in lien against real property
Yes. In order to avoid a lien a duly noticed motion must be filed and approved by the Court. However, it would have had to have been shown that the lien impaired your homestead exemption with the calculations provided for in 11 USC 522(f). I am assuming that this lien was recorded and attached to your property prior to the Ch. 7 filing.
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