Legal Question in Bankruptcy in California

Judgments and Liens

I have a judgment against a party from Mar 97 as she was a co-signer for a loan. In Aug 97 she filed CH 7 BK (which I did not know until this week). After several years of promises by her to pay, I put a lien on her home, which she owned at the time of my judgment. I have heard nothing from her since. Out of the blue she called saying I need to remove the lien/abstract from the recorder because she filed BK and wants to sell her home. I asked for copy of papers to prove. I am listed as a creditor. However, I was never noticed. Do I have to remove my abstract of judgment from the county recorder? I think I should have at least had the opportunity to request the money owed to me at her BK hearing.


Asked on 6/18/04, 1:46 am

3 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Judgments and Liens

First of all, if your lien was recorded after the bankruptcy case was filed, it is void. Thus, you really should not have to remove it, but probably the Title Company is insisting on it and her attorney isn't helping her explain it to them. If her case was a "no asset" case, then her failing to list you as a creditor is a non-issue. You should remove the lien if it was recorded after the bankruptcy was filed. If you did not receive notice of the bankruptcy case and you think you have grounds to object to the discharge of your debt (such as for fraud), then you can seek to reopen the case an litigate that.

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Answered on 6/18/04, 1:59 am
Robert F. Cohen Law Office of Robert F. Cohen

Re: Judgments and Liens

Basically, you wouldn't have been able to do anything at the BK hearing to affect the discharge of the debt, unless you filed an action alleging it was nondischargeable because of fraud. If there was no fraud, and she just couldn't pay, then the debt is discharged despite your not having notice. If you think there was fraud -- i.e. that she took the money knowing that she was insolvent and would never pay (and gave you "cooked books" for instance), then you might immediately consult with a BK litigator and try to reopen to challenge the discharge of the debt to you.

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Answered on 6/18/04, 2:08 am
Amy Ghosh Law Offices of Amy Ghosh

Re: Judgments and Liens

If the lien was placed before the BK was filed..the BK does not automatically voids the lien. Her attorney needs to additional paperwork. You do not have to do anything as to the lien other then try to initiate an adversary proceeding if your debt was discharged.

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Answered on 6/18/04, 11:40 am


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