I am a nj resident and I own a home that is appraised at $320,000. I have a mortgage of $240,000 and a judicial lien of $60,000 on the home. They are forcing a foreclosure because of the judicial lien and I want to somehow get rid of the lien. Should I file for bankruptcy. NOt sure if Chapter 7 will help because the judicial lien is a secured claim. Also, not sure if Chapter 13 will help because I will have to pay back the $60,000 and max they allow is 5 year repayment plan and so I will have to pay $1000 each month. Any way around this? Do they allow me to pay less than $60,000 if I file CHapter 13? Can I get rid of the lien in Chapter 7? ANy help is really appreciated. Thank you.
2006-12-25 05:40:53 · 6 answers · asked by tammy z 1 in Politics & Government ➔ Law & Ethics
Section 522(f) of the Bankruptcy Code does allow for the removal of a judicial lien in a Chapter 7 case if the lien impairs your homestead exemption. You may also be able to remove the lien in a court-approved Chapter 13 repayment plan.
You MUST consult local bankruptcy attorney who knows bankruptcy and the homestead exemption laws for your state. Filing bankruptcy will NOT automatically remove this lien and you must follow the proper procedures. Most attorneys will give a fee initial consultation.
2006-12-28 09:23:27 · answer #1 · answered by Carl 7 · 0⤊ 0⤋
At CREDIT-SOLUTIONS.INFO- you can find the best financial solutions
RE Bankruptcy?
I am a nj resident and I own a home that is appraised at $320,000. I have a mortgage of $240,000 and a judicial lien of $60,000 on the home. They are forcing a foreclosure because of the judicial lien and I want to somehow get rid of the lien. Should I file for bankruptcy. NOt sure if Chapter 7 will help because the judicial lien is a secured claim. Also, not sure if Chapter 13 will help because I will have to pay back the $60,000 and max they allow is 5 year repayment plan and so I will have to pay $1000 each month. Any way around this? Do they allow me to pay less than $60,000 if I file CHapter 13? Can I get rid of the lien in Chapter 7? ANy help is really appreciated. Thank you.
2014-10-01 08:02:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Two people you should talk to!!
1. There appears to be a fair element of equity in your house. Talk to your existing lender and other lenders to see if you can take out a top up mortgage or, alternatrively, take out a single new mortgage to the value of 300k.
Given the judgment, it will however be difficult to obtain the top up or second loan!!! If you have family or friends, you could try and obtain a short term bridging loan from them and use this to discharge the judgment and ensure that its removed frm the jugment register and that there are no lis pendens on the propery. Once this is done, assuming you have a financial institution lined up, you can take out the top up mortagge or new mortgage and re-pay your friend/family member!
2. Talk to your lawyer, you will need to remove the judgment mortgage before you apply for the top up above.
2006-12-25 14:15:54 · answer #3 · answered by Martin 2 · 0⤊ 0⤋
Try the site below, make sure to change the State in which you reside. The last site is an affordable way to obtain access to your Legal Rights and afford an Attorney/Law Firm. Hope this helps.
2006-12-25 19:53:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
no The bankruptcy would not save the house, you could slow it down, but all that would happen is that you would have to sell the house for the bankruptcy.
But basicly there is little way out of it, you should go see an attorney just to be sure
2006-12-25 17:00:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Why not take a secured mortgage out on the home?
2006-12-25 13:45:46 · answer #6 · answered by Chainsaw 6 · 0⤊ 0⤋