Legal Question in Real Estate Law in Illinois

i have a home i just had a judgement on me can the company with the judgement lien my home

Asked on 11/05/13, 6:16 pm

2 Answers from Attorneys

Henry Repay Law Offices of Henry Repay

Yes. The judgment creditor can record a Memorandum of Judgment. Depending on your equity, that lien would then need to be paid should you sell or refinance. The lien can be foreclosed, but rarely do creditors pursue that avenue. More likely, you will be facing (1) garnishment of wages; (2) garnishment of accounts; and (3) citation to discover assets that you have that can be taken to satisfy the judgment.

If this is part of an overall financially difficult picture, I recommend you consider a bankruptcy filing. There may be options even if you filed before. Too many people make the mistake of avoiding bankruptcy, tapping into exempt assets like the last of their savings, retirement funds, etc., then filing bankruptcy anyway after they have left themselves even more strapped.

The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) your income information for May 2013 through the present, including wages and unemployment during that period; (2) all your bills (copies neatly assembled, back pages included); (3) last four years’ tax returns; (4) a credit report (use to obtain free report if not requested in last year); and (5) other information that may apply, such as copies of lawsuits. Call at your earliest convenience to afford the most opportunity in which to be advised about your best course. You are not required to use an attorney in your area.

I do not recommend filing bankruptcy on your own. There are too many complex issues. I have seen several posts on this site for debtors who filed on their own and are seeking counsel concerning complications. Most of them will have a hard time finding an attorney to get involved to unwind the mess without the attorney charging several times what would originally have been paid.

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Answered on 11/06/13, 6:47 am

I too must say "yes" but here's my take on it: if you have other assets (wages, bank accounts, stocks, bonds, cars, boats, stamp collections . . . ) it will NORMALLY be far easier for the judgment creditor to go after THOSE kinds of assets through collection ("supplemental") proceedings than to attempt to get your house sold to pay off the judgment. BUT: judgment creditors are NOT obligated to start ANY such proceedings, and with statutory interest much higher than regular bank account interest, they may be VERY happy just to sit on their judgment for a while, accrue interest, and wait until that adds up to be very painful for you. Since you have given us NO indication of the amount of the judgment, the value of your home or the amount of your mortage(s)...we can give no legal advice on what ultimately may be the best strategy other than to find a way to pay off the judgment if you can unless there are grounds for appeal that are available that you want to pursue...and pay for.

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Answered on 11/06/13, 9:36 am

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