[CLBS] judgment lien

[Laura Burri]

Listmates - I filed a bankruptcy in 2015. At the time, the debtors had a judgment lien on their house. The creditor was listed as an unsecured creditor. The judgment was not listed on the SOFA. The Judgment was not set aside during the bankruptcy filing. The debtors had no equity in the house, actually underwater about $30,000, at the time the bankruptcy was filed. So, they had no homestead to protect at that time. The debtors do not want to pay the judgment lien.

Now the debtors have equity in the house. They are trying to sell and purchase a new house. The judgment lien has show up and the creditor wants paid.  It seems to me that the debt was discharged but the lien remains. Since the judgment lien did not impar the homestead at the time of the bankruptcy filing, it could not have been set aside.

Does anyone have any suggestions on how the judgment lien can be treated?

Laura E. Burri
Attorney at Law
[M&F-sm-RGB]
   332 North Broadmore Way, Suite 102
  Nampa, Idaho 83687
  Phone (208) 475-2200
  Fax      (208) 475-2201
  lburri at morrowfischer.com<mailto:lburri at morrowfischer.com>


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