Legal Question in Personal Injury in New Jersey

creditor

If I am ordered by the court to pay someone for injury, and the only asset I have is my house which I am still paying mortgage. When I am forced to sell the house, who gets the money from the house? the mortgage company first, the other creditor next; or they split according to the percentage of the total amount I owe.


Asked on 2/15/04, 1:16 pm

3 Answers from Attorneys
Rafael Gomez Rafael Gomez, Attorney at Law, P.C.

Re: creditor

You will be able to avoid paying the judgment by filing for bankruptcy protection. It will save your house from foreclosure and the creditor will most likely receive nothing from his/her judgment. Call me 201-646-9799

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Answered on 2/16/04, 11:43 am

Re: creditor

Be advised that if the judgment was for fraud of any kind, you can not discharge the obligation in bankruptcy. If you owe $200,000, and the house is worth say $200,000 - $240,000, there may not be enough equity to make the forced foreclosure on the property feasable, though it may be a year from now!

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Answered on 2/16/04, 5:44 pm
Eric Kochel The Law Office of Eric David Kochel, Esq., P.C.

Re: creditor

The mortgage lienholder is paid first (assuming it is a first mortgage). Then, if anything is left - the judgment lienholder is paid. But, if there is suffecient equity in the property and the judgment is substantial, the judgment lienholder could foreclosure on your property.

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Answered on 2/15/04, 8:44 pm


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