Bankruptcy wipes out your personal liability for the debt, assuming that it qualifies for the bankruptcy discharge. This means the creditor cannot later sue you to collect the debt and use the judicial lien (see above) to garnish your wages or take money out of your bank account.

Are judgment liens dischargeable in bankruptcy?

If a creditor gets a judgment against you and the debt is dischargeable in a Chapter 7 bankruptcy, filing for bankruptcy will wipe out a creditor’s ability to collect. And liens don’t go away in bankruptcy automatically. So it’s possible to wipe out a judgment in bankruptcy and remain obligated to pay the lien.

How long does a bankruptcy lien last?

ten years
How long does a judgment lien last in California? A judgment lien in California will remain attached to the debtor’s property (even if the property changes hands) for ten years.

Can a lien be placed on your property after Chapter 7 bankruptcy?

Assuming that this was a dischargeable debt that was listed in an individual’s Chapter 7 bankruptcy, the answer to the question is no. A lien cannot be placed on your property after a discharge has been entered by the court.

What happens when you file for Chapter 7 bankruptcy?

Filing for Chapter 7 bankruptcy would eliminate any personal responsibility to pay on the house, but if you want the lien removed continued payments under the contract terms would need to be made in order to satisfy the lien and make it go away.

Why do lenders stop sending statements after bankruptcy?

THE REASON LENDERS STOP SENDING THE STATEMENTS AFTER BANKRUPTCY. When someone files for Chapter 7 bankruptcy or Chapter 13 bankruptcy, there is an injunction called the automatic stay which goes into place immediately. The automatic stay is an injunction which says that no one can take any sort of action to collect a debt from the debtor.

What happens when a debt is discharged in bankruptcy?

One area where a lingering “lien” after a bankruptcy discharge rears its ugly head is in the form of a judgment lien. When a creditor files a lawsuit to collect a debt that is owed, and the court determines the creditor is owed the money, a judgment is entered against the borrower.