Can Bankruptcy Remove A Judgment Lien From My Home?

It is possible to remove a judgment lien from your home in bankruptcy, but it will depend on the equity you have in the home. If the value of the home is less than the total balance of any liens on the home in front of the judgment creditor, usually a mortgage, second mortgage or home equity loan, and statutory liens, then a judicial lien can be removed (termed “avoided” in bankruptcy). In that case, the debt owed is treated as a general unsecured creditor and can be discharged in the bankruptcy. If the home is worth more than the total balance of liens in front of the judgment creditor, then there is equity for the judgment creditor to attach to and the lien cannot be removed. It may be able to be reduced in a Chapter 13 or partially avoided in a Chapter 7, depending on your jurisdiction, but it cannot be avoided in full.

It is worth noting the difference between a statutory lien and a judgment lien here. A statutory lien is attached to the property by law and generally cannot be avoided. Examples of statutory liens are homeowner’s association dues, water bills, property taxes and, in some cases, past due income tax liabilities. A judicial lien, by contrast, is simply a debt where the creditor has gone to state court and obtained a judgment against you. The judgment, usually after a waiting period, can then be recorded against the home and thereby become a judgment lien. These types of liens are effectively weaker than statutory liens and are more easily addressed in bankruptcy.

Need Help With Bankruptcy?

Take the first step toward financial freedom. Answer a few questions to get started with your free evaluation.

Why are you considering bankruptcy? *

Company

How much unsecured debt do you have?^ⓘ *

Is an attorney helping you? *

Please describe your current financial situation. *

Contact Information *

Please share your contact information below so we can match you with a local bankruptcy firm. A representative from that firm will call you to explain your options.

There is no charge to speak with an attorney, and your conversation will be kept completely confidential.

First Name Last Name Email Phone Number Zip Code By submitting this form, I expressly consent to receive calls and text/SMS messages from Bankruptcy.com and/or its participating sponsors using automated technology, prerecorded and artificial voice messages. My consent to such contact is not a condition of purchase. I agree to the use of electronic signatures, Privacy Policy, and Terms of Service, including its requirement to arbitrate disputes.