judgement

[junker]

two years ago i sold my house in California and moved to Florida, the day i closed on the house a collection agency served papers and was granted default judgment and obtained a abstract lien, will i be able to remove these in a bk, it would be the primary reason i would file. i also would file Pro Se.
the judgement is from unsecured debt. (MBNA loan) If i sell my home in Florida will i have to pay this from proceeds,? this home is worth far below the exemption in Florida.

[lrprn]

two years ago i sold my house in California and moved to Florida, the day i closed on the house a collection agency served papers and was granted default judgment and obtained a abstract lien, will i be able to remove these in a bk, it would be the primary reason i would file. i also would file Pro Se.
the judgement is from unsecured debt. (MBNA loan) If i sell my home in Florida will i have to pay this from proceeds,? this home is worth far below the exemption in Florida.

First, with a lien involved, filing pro se is *NOT* a good idea. For ways to find money to file, see http://moneycentral.msn.com/content/...de/P129758.asp - scroll down to 8 Places to Look for Cash.

About your lien...according to the Moran Law Group at http://www.moranlaw.net/discharge.htm -
"Even though personal liability is discharged, most liens, the liability of an item of property for a debt secured by that property, pass unaffected through bankruptcy unless a court order modifies or voids them. So, after a bankruptcy discharge, a lien may remain a charge on an asset the debtor owned when the case was commenced, but that debt cannot become a lien on any assets that the debtor acquires after the bankruptcy discharge."

Also from the same website at http://www.moranlaw.net/secured.htm :
"Usually a judgment does not, in and of itself, give the judgment creditor a lien; The creditor must usually take an addition step of filing or recording the judgment with the designated agency to create a lien on the judgment debtor's property.

In California, recording an abstract of judgment with the County Recorder gives the judgment creditor a lien on all the debtor's real estate in the county. Recording notice of the judgment with the Secretary of State gives the judgment creditor a lien on all the debtor's personal property.

Check the laws of your state to determine how judgment liens are perfected. Get a report of liens on file with the secretary of state to know what liens are perfected, and the seniority of each lien.

In analyzing a debtor's situation for bankruptcy planning, it is important to know if judgment liens have been perfected, since secured debts are totaled separately from unsecured debts in calculating the debtor's eligibility for Chapter 13. Judgment liens may be avoided if they impair exemptions; in Chapter 13 they can be stripped down to the value of the assets to which the lien attaches."

Do you know how the lien was recorded in California?

The most reliable way to answer your questions is to ask an experienced bankruptcy-specialty lawyer in Florida. Most bk lawyers give free half hour to hour initial consultations. Make appointments with 3-4 in your area - you will learn a great deal and get the answers about your lien as well. You've been living in FL for two years, so you can use Florida's exemptions to file - see http://www.bankruptcyinformation.com/FL_exemp.htm .

Keep us posted on what you find out, ok?

[Spartan]

If the underlying debt (MBNA unsecured) is discharged, then you can file petition to get the judgement and the lien removed.

Which house has the lien on it? Correct me if I am wrong. With the lien on the house, you can't sell the house.

[junker]

re.

Thanks for the info. i think everything was filed in California. the house sold quickly, and they served me with papers to appear the very day i closed. and left CA. so i wasnt even a resident of Ca when they went to court. a credit repair agency put me on a 3 way phone conversation with them, and they said they had a 3500 judgement and 500 abstract lien. which i assume is in CA, I thought in Florida your home is exempt from judgements. altho i will check with county office. i have never received any papers on any of this, it is just on my credit report.