Legal Question in Bankruptcy in California

Re: Judical Lien vs Home Equity Loan ?

By "judicial lien", I assume you mean a "judgment lien" which arises because a creditor got a judgment against you and then recorded an abstract; if this is what you are talking about, I do not see how it could have priority over a "home equity Loan", as any lender would have gotten a title policy to see what was recorded against your property before making a loan; then, customarily, if you have a judgment lien on record, a lender usually will not make the loan, or, at the very least, require you to pay it off before they make the loan. California is a "race notice" state, and the lienholder who records first is in priority. Whether a judgment lien can be removed from your title, depends upon when it recorded, and what it is for. If it has been on title for an extended period of time prior to filing bankrutpcy, there is little chance it can be avoided. Lastly, if it can be "avoided" because it "impairs" or eats into your homestead exemption, you must take action to do it--it is not the trustee's job to do it for you.

Re: Judical Lien vs Home Equity Loan ?

A home equity loan would not be given if a lien. The home equity loan is paid off first, then your homestead exemption and if any left over then the lien.