Avoiding Judgment Lien in BankruptcyAvoiding Judgment Lien in Bankruptcy

Avoiding judgment lien – When a creditor gets a judgment, they may file a lien against any real estate you own in a particular County. Bankruptcy can provide relief from such a lien. Under appropriate circumstances, a recorded judgment lien can be avoided in a chapter 7 bankruptcy. To avoid a judgment lien in a chapter 7 bankruptcy you must provide proof that the judgment lien impairs an exemption plaintiff claimed in the bankruptcy. These are all terms of art. As an experienced bankruptcy professional, I have avoided numerous liens for clients. It is important to note that the power to avoid a lean depends upon the specific circumstances. Therefore, consulting with an experienced bankruptcy professional is the first step in determining if the judgment liens that have attached to your property can be avoided.

A chapter 13 bankruptcy, also known as a repayment plan bankruptcy, also provides the opportunity to provide for or avoid judgment lien. The treatment of a judgment lien in a chapter 13 bankruptcy is entirely dependent upon several factors: the value of the real estate at the time of the bankruptcy filing, the amount of the first mortgage balance if any the amount of the available exemption or property protection in bankruptcy and the amount of the judgment lien. The timing of the judgment lien is also important as in when it attached to your real estate. In a chapter 13 a judgment lien may be avoided or it may be provided for – in other words paid for – in the chapter 13 repayment plan. Once again it depends on your individual circumstances – so a carefully tailored plan to fit your specific situation is the key to a successful chapter 13 resolution.

During the current COVID-19 economic disruption real estate valuations are uncertain. Now is the time to consult with a professional to discuss your options to either provide for or avoid judgment lien. My office will consult with experienced real estate professionals so that we may all coordinate in addressing your particular judgment lien situation.
Bankruptcy may present a unique vehicle to address any judgment liens which is attached to your real property. Please contact my office To determine what your bankruptcy options are under both chapter 7 and chapter 13.


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Judgment liens on your real estate is often why potential clients contact us. Be proactive. Call to discuss your unique situation and how bankruptcy may provide a mechanism to remove a judgment lien from your residential real estate.

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Orange County Bankruptcy Attorney Michael D. Franco, can help you stop remove judgment liens, stop bank levies and wage garnishments, protect you and your family from creditors. Call for a Free Phone or Office Consultation (714) 252-6268 Today!

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Michael Franco will continue to serve clients and engage new clients during this time of unprecedented closures and restrictions. We are able to provide BANKRUPTCY services online. Call or contact us through our website to get started.