In which way to remove a judgment lien from your property

many householders have found themselves in the position of owing cash on a debt which they simply cannot recompense back, or have been sued by somebody and failed to respond to the law suit. When this happens, the plaintiff often times will attempt to gather on their judgment by putting a lien on the homeowner’s property. Numerous of my bankruptcy client’s have reached me with just such a circumstance. This becomes an issue after a consumer’s unsecured debts have been discharged in bankruptcy. The ground is simple; the homeowner has a lien against their house post bankruptcy and they do not owe any cash to the lien holder.

after a chapter 7 discharge, a debtor may stay clear from a judicious lien by motion to the court. To the extent lien impairs an exemption to which the debtor other than as supposed or expected would have been eligible beneath the bankruptcy laws. As a result, the bankruptcy court will concede a chapter 7 debtor’s motion seeking to stay clear from a judicious lien whether or not debtor’s equity in the property is fewer than the quantity protected beneath the massachusetts homestead act, which currently stands at $500,000 in value for the land and building, m. G. L. C. 188 § 1, and when the creditor’s lien totally impaired the debtor’s equity in the property. in re lyons, 355 b. R. 287 (2006).

so what’s the gist of all of this legal speak? When the collateral has no value, the creditor has no assert against it because it are going to be treated as unsecured, and therefore the debtor may discharge that lien.