Can a judgment lien be removed in a bankruptcy case? What is a lien?
Whether a debt can be discharged depends on the type of debt it is, and how it was incurred. For example, debts incurred through fraud are not dischargeable. Neither are certain tax debts or student loans.
Please note that a judgment and a lien are not the same thing. A judgment is a court order either fixing liability and an amount owed, or ordering someone to do something whereas a lien is the creation of a security interest against an asset or assets, giving the judgment creditor rights against that asset (such as real estate, or a bank account, or wage garnishment).
A judgment lien is not automatic. A creditor must first obtain a judgment from the court. Then, to create a lien, it must be perfected under applicable non-bankruptcy law (usually the State or county in which the asset is located). For real estate, this usually requires getting certified abstract of the judgment from the court that issued it, and recording it with the county recorder's office wherever the property is located that the creditor wants the lien to attach.
So, can one eliminate a judgment lien in a bankruptcy case? The answer is "yes", if certain requirements are met.
