Asked almost 3 years ago - Long Beach, CA
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For the sake of a Bankruptcy, is a judgment lien that is recorded considered a secured interest to the creditor when it comes to bankruptcy?
Or is it considered unsecured since it is involuntary and was never pledged as collateral?
They are generally unsecured unless they have been attached to a specific piece of property. Even if they have become secured they can usually be avoided through the bankruptcy process.
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My answer provides information about the law based on the limited information provided in the questions asked and is not intended to be legal advice. The law differs in each jurisdiction and may be interpreted or applied differently depending on the location or situation. I highly recommend that you consult with an attorney to discuss the specific details of your situation so you can get legal advice tailored to your specific circumstances. The information in my answer is for educational and information purposes only, and is not legal advice or legal opinions. The answer provided to the question asked does not constitute a lawyer-client relationship.
I agree with my colleagues. However, you may want to consult an experienced bankruptcy attorney in your area because if you have real estate, you will want to seek to avoid the judicial lien if it impairs your exemption in the equity of the real estate.
Most bankruptcy attorneys provide free consultations and could advise you if you are a candidate for avoiding a judicial lien against your property.
Disclaimer: The materials provided herein are for informational purposes and neither constitute legal advice nor should they be relied upon as legal advice. Every situation is fact sensitive, and it is impossible to evaluate a legal problem without a comprehensive consultation and a review of all facts and documents at issue. This answer does not create an attorney-client relationship. I am a California Bankruptcy lawyer. You should consult with a bankruptcy attorney to obtain advice specific to the particular facts of your case.
Judgment liens are generally treated as unsecured, but not because they wer einvoluntary. They attach to real property as a result of the fact that they are filed in the jurisdiction where the property is located. However, they were not part of the resources used to purchase the property, and in some cases the lien interferes with exempt equity and may be unsecured because the total value of the mortgage, exempt equity and other liens makes it unsecured because there is no equity to attach. In some cases a second mortgage could be totally unsecured. In that case you have to file chapter 13 and bring a motion or adversary to strip the secured lien and make it unsecured.
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