[CLBS] judgment lien

[Randal French]

If the judgment was recorded when judgments were good for 5 years, before the amendment for judgments entered after July 1, 2015, if I recall correctly, then is the judgment now more than 5 years old and would have lapsed according to statute?  If so, then the title company just needs to be told that and it should acknowledge that the judgment lien is lapsed and there is no judgment lien in force.

If the judgment has not lapsed yet, was it recorded before 7/1/2015, and when will it lapse?  Maybe the client can wait it out.

If not, I think that you could still re-open the case and move to avoid the judgment lien.  I do not believe, although I have not researched, that the absence of equity prohibits a lien avoidance, specifically because of the result you have here.  

Alternatively, you could have the creditor's judgment claim valued under 506(c) and avoid the lien either because there is no equity in the property or because the judgment lien impairs the homestead exemption.

According to the statute, the judgment attaches to any equity in the real property, doesn't it?  If there was no equity as of the date of filing of the bk, then there was no equity for the judgment to attach to.

Good luck.
Randy French

Law Office of Randal J. French, P.C.
Attorney at Law (ret.)
 (208) 859-6881

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-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Laura Burri
Sent: Tuesday, July 16, 2019 10:49 AM
To: clbs at admws.idaho.gov
Subject: Re: [CLBS] judgment lien

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>