Skip to main content

Stripping judgment lien after bankruptcy case is closed. New Jersey Attorneys only please!

Roselle, NJ |

I have asked this before but only received replies from non NJ attorney, unfamiliar with NJ law that allow state court to strip judgment 1 year after closing of case without re-opening bankruptcy case.

I have a money judgment lien against my property. The bankurptcy case was closed about 2 years ago and now I would like to remove that judgment lien. I heard that you can file a motion to remove the lien in state court. would this go under the same docket number as the original lawsuit? Would it be in same county as where judgment was entered under same docket?

also if I hire an attorney what is the range of fees I can expect to pay for such a service?

thank you for your help

Attorney Answers 5

Posted

Yes, Under N.J.S.A. 2A:16-49.1, anytime after one (1) year has elapsed after a debtor is discharged from their debts, you may apply to the same Court for an order directing that the subject judgment be expunged.

Range of fees - $500 - $1500 depending on opposition, if any.

Mark as helpful

1 found this helpful

9 lawyers agree

Posted

Yes, you would need to file the motion under the same docket number and in the same Court in which the judgment had been entered. You can remove the judgment lien of record so long as the judgment lien was an avoidable lien under the Bankruptcy Code at the time your bankruptcy was filed. We charge $500.00 for the motion plus Court costs, which is usually $35.00. If opposition was filed by the judgment creditor the cost could increase, but it is extemely rare that oppostion is filed.

Mark as helpful

1 found this helpful

5 lawyers agree

Posted

Yes, you can file the Motion in State Court under the same docket number and it is under the authority of the case law called In re Party Parrot.

The previous information is solely for informational purposes only. If you have further questions, please contact an attorney in your area for more specific answers. Responding to your question in no way creates an attorney/client relationship, and none of the specific guarantees of privacy exist. If you have found this information helpful, kindly check the "helpful" box.

Mark as helpful

1 found this helpful

4 lawyers agree

Posted

Mr. Johnson is correct. A separate motion needs to be filed in each lawsuit which resulted in judgment, under the same docket number These are almost always unopposed and done on the papers.

The foregoing answer is for informational and educational purposes, not for purposes of legal representation. This answer is based on New Jersey law and is necessarily general in nature.. Laws in other states may be different, and each situation is different, so this answer might not apply accurately to you. No attorney client relationship is to be implied from this answer. Always seek independent legal advice.

Mark as helpful

1 found this helpful

3 lawyers agree

Posted

If you are seeking to "AVOID" the fixing of a Lien in the State Court after a Chapter 7 Bankruptcy Case, the lien can only be avoided if it impaired your exemption under § 522 of the bankruptcy code. There is a formula at § 522(f)(2)(A) setting out how to tell what portion of the lien, if any, impairs the exemption and is avoidable, and what portion would remain as a lien. A well prepared motion will set out all of these particulars. If the lien in question was eligible to be avoided as an impairment of the exemption, it could also have been avoided in the Chapter 7 bankruptcy case. Liens can not be "stripped" in Chapter 7 bankruptcy cases for other reasons as they can in Chapter 13 bankruptcy cases.
Bruce C. Truesdale

Mark as helpful

1 found this helpful

2 lawyers agree

Bankruptcy and debt topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics