Legal Question in Bankruptcy in California

i just purchased a home with another person, in a county where i have a abstract lien against me. i assume it will attach to this house. i am over 65 years old and believe i have a 150k exemption on the property. and the house is only valued at 70k will i be able to easily remove this lien in bankruptcy with a 522 motion. even if i wait another few years to file. the lien is already 5 years old.. if the creditor decides to renew it i will definitely want to file to clear it up. in case of my demise.. so that my heirs, or person owning other half of property wont be encumbered by my debt. i believe this house is recorded jt with right of surviorship..am i to understand the debt would expire.when i do? thankyou


Asked on 10/23/09, 1:43 am

1 Answer from Attorneys
L.A. BK Atty Leon Bayer Bayer, Wishman & Leotta

If you are qualified and eligible to file a Chapter 7, then it may be best to go ahead and do it now. If you have lived in California continuously for more than 2 years, then the California exemption applies. Since you are already thinking about your heirs, it's possible that you would pass away before you ever get around to filing the BK and avoiding the lien. Also, things change over time. Suppose your joint tenant dies before you do? Suppose the property has a very substantial increase in value before you get around to filing your bankruptcy? Things like this can create big problems down the road.

It's high time for you to have an in person consultation with an attorney who specializes in bankruptcy. Issues for discussion with your attorney will include lien avoidance, and should also cover the ability to exempt your equity in the property, as well as an opinion on whether the judgment is dischargeable in bankruptcy.

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Answered on 10/28/09, 2:52 pm


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