Judgment Liens in Bankruptcy
Personalized Legal Counsel in Manhattan, Queens & Brooklyn
Have you ever heard of a judicial lien? If you have been dismayed by mounting debts and have been desperately trying to take control of your difficult situation, you may have come across this term in your research. Although the term “judgment liens” can sound like yet another example of legal jargon, it is an important concept referring to when a creditor holds a claim on your property since you have not been able to pay your debts on time.
If you can’t pay back your debts, the creditors could sell your property in order to make a little extra money. Unfortunately, selling your valuables at bottom dollar rarely helps repay your debts. Instead, turn to our judgment lien lawyer in Manhattan to find out how you can have freedom through bankruptcy.
Call us today at (917) 909-6166 to see how the Law Office of Julio E. Portilla, P.C. can get you back on track on paying your debts.
How Do Judgment Liens Work?
The way that any type of lien works is that the creditors can seize a debtor's property and hold it until payment is made – or until the debt collector sells the property to make a fraction of the sale it would normally make. In New York, liens that are based on physical, real property, or even your future acquisitions, are known as judicial or judgment loans. They are completely non-consensual, and you cannot avoid them by seeking an appeal.
Another trouble with liens is that they are often really difficult to get rid of, with some even continuing after the bankruptcy process. However, if you have a powerful and supportive attorney, they can inform you of ways you can still avoid judgment liens through bankruptcy.
Using Bankruptcy to Discharge Judgment Liens
Other than paying the debt, there is another option of getting rid of judgment liens: through bankruptcy. Of course, we would all prefer to pay off debts immediately, but this is often not the answer when facing mountains of debt.
Thankfully, applying for bankruptcy is also an excellent way of avoiding liens. If you have applied for bankruptcy, for example, through Chapter 7, you can select the option of avoiding the lien. Once you have a court order for this, your judicial lien simply disappears. After your bankruptcy is eventually closed, your property would remain completely liberated from the lien.
However, there are a few eligibility standards which you must meet, including:
- A money judgment which has been issued by the court must have caused the lien
- You as the debtor have to possess the ability to claim exemptions in some of the property’s equity value
- It is clear that having a lien would destroy or greatly diminish the property’s value (such as if the property was sold by the creditor for the quickest, and often decreased, price value)
Can Bankruptcy Get Rid of All Lawsuit Judgments?
While bankruptcy can help to discharge lawsuit judgments for most debts, there are limitations.
- Only judgments for dischargeable debts such as credit card debt, personal loans, overdue medical bills, etc. can be eligible for a discharge when you file for bankruptcy.
- Judgments for debts such as criminal fines, child support, alimony, and debts acquired due to criminal acts, are not subject to discharge through bankruptcy.
If you are facing a lawsuit for debts or your wages are being garnished, talk to an attorney immediately to learn your options on whether you can get eliminate your judgments.
Get in Touch with Our Knowledgeable Lawyers
Understanding how judgment liens work, let alone applying for bankruptcy correctly, can be extremely challenging. Thankfully, you are not on your own. You can count on the Law Office of Julio E. Portilla, P.C. to clearly explain all the steps involved.
The majority of the firm's clients are referrals. This is a testament to their faith in Attorney Portilla's ability to provide the best legal counsel and advocacy.
When you hire Attorney Portilla you can count on transparent communication regarding your case and fast response times on all questions!
For your safety and convenience, The Law Office of Julio E. Portilla, P.C. offers phone and video consultations as well as same-day appointments.
The team at The Law Office of Julio E. Portilla, P.C. is multilingual and serves its clients in English, Spanish and French.
Attorney Portilla takes the time to listen, walk you through the process, and create a personalized strategy for your case.
Attorney Portilla is a proven litigator who has vast experience handling various cases types in a courtroom successfully.
He not only guided me in my most difficult moments, but he was determined and positive at all times.- Kat Sykes
He helped us every step of the way and made us feel so comfortable during a very difficult time.- Anahida
He was there for me in my time of need when I thought I had no options.- Iris
I never felt lost, and the entire process was very stress-free thanks to Mr. Portilla.- Happy Client
He was there for us every step of the way and would recommend his services to anyone who needs a reliable lawyer.- A. Ovan