Legal Question in Credit and Debt Law in California
i won a judgement by default. An abstract of judgement was filed against the debtor and a lien was created against the debtors property. Since then the debtor filed bankruptcy, the original debt was discharged however the lien still exist. I know that the lein can be renewed in 10 years but can it be renewed if the original debt was discharged or can i renew the judgement as if the discharge didn't happen.
1 Answer from Attorneys
Only certain voluntary liens survive bankruptcy discharge. The abstract of judgment was discharged along with the underlying judgment. Just because the lien shows up in the chain of title doesn't mean "the lien still exist [sic]." Everything ever recorded remains in the chain of title, but that does not mean the legal rights under it continue to exist. If A deeds property to B, and then B deeds the property to C, the deed from A to B remains of record, but it does not mean B has any rights in the property anymore. It is merely a link in the chain of title that now belongs entirely to C. So the record of the lien still exists, but the lien rights you once held are gone. Recording anything in an effort to exercise lien rights or otherwise collect the judgment would open you up to liability and penalties under the Bankruptcy Act, and probably under Fair Debt Collection Practices and slander of title laws as well.