Legal Question in Real Estate Law in California

Re: abstract of judgment

The abstract is rendered null and void by the bankruptcy. While recorded against your property, it is a cloud on the title to any real property, new or old. You will have to get the bankruptcy court to issue a release so you can record it against the abstract to release the lien created by it. Good Luck.

Re: abstract of judgment

Keep in mind that an Abstract of Judgment is a document prepared by a judgment creditor or the creditor's attorney and presented to a court clerk for formal "issuance." The only facts the court clerk will check before "issuing" the A/J are whether the facts shown on its face compare correctly with that court's records. The clerk has no knowledge of the bankruptcy, the possible discharge in bankruptcy, or any other matter affecting the validity or enforceability of the proposed A/J. Bankruptcies are conducted in Federal court; most judgments and abstracts originate in the state courts.

There is a space on the A/J form where the applicant is supposed to check a box if the enforcement of the judgment has been stayed by "the court" but no space or wording that requires the applicant to indicate that enforcement is stayed by the automatic stay of bankruptcy or, for that matter, by discharge.

If the creditor obtains and files an A/J with knowledge of the discharge, the creditor is being unethical and may also be trying to commit a fraud of the erstwhile debtor.