Legal Question in Bankruptcy in New Jersey

Re: Judgement Lien

A judgment docketed with the Clerk of the Superior Court of NJ creates a statewide lien against real property owned by the debtor. Assuming docketing of such judgment prior to the filing of the bankruptcy petition, the judgment lien itself does not disappear as a result of your bankruptcy discharge; though the creditor is prohibited from trying to collect the judgment amount due to the discharge of the underlying debt. It is possible that the judgment creditor might simply sign a warrant to satisfy judgment or consent order expunging judgment that you can file, given the creditor's inability to enforce collection of the underlying debt. However, if that does not happen, and to avoid having to satisfy the judgment as a condition of closing (the title company will generally insist that all judgments be cancelled or paid), then you can move the Superior Court of NJ under a particular state statute to direct the Clerk to cancel and discharge the judgment of record. To do this, you must demonstrate in the motion, among other things, that your bankruptcy discharge occurred more than a year beforehand. Feel free to call me if I can be of service in regard to helping you to cancel this judgment. I am at (973)664-1090.

Re: Judgement Lien

The seminal document is the Discharge in Bankruptcy that you received from the court. If that document discharges the judgment against you, then it can be used as proof that the judgment has been satisfied and the title company is required by law to accept it as such.