Legal Question in Credit and Debt Law in California

I judgment must be obtained first and then an Abstract of Judgment can be filed with the County Recorder's Office where the property is located. That creates a judicial lien on the property. If it is in a revocable living trust, then the judicial lien will cloud the title which means you will not be able to obtain title insurance on the house in case you want to sell or refinance it without dealing the lien. The living trust is just a convenient device to transfer property upon death quickly and privately without going to court for probate of the will or estate. It does not protect you from creditors although it will complicate things a little for the creditors if they want to sell your house to collect the debt. The trustee and the trustor are usually the same person in a typical revocable living trust. Again, there is no protection from creditors because you put the house in a revocable living trust where the trustee(s) and the trustor(s) is or are the same person(s).

If you receive a lawsuit from a collection agency, consult an attorney without delay, or else there will be a default judgment and a lien placed on your house.