Liens

KyleW

Member
Jurisdiction
California
First of all, thank you for taking the time to read my question,

I have a quick question about getting a lien on s debtor's house:
Hypothetically speaking, if I were to place a lien on a debtor's house and they file a Chapter 7 BK, does that potentially wipe out the lien?

A little background for the hypothetical:
  • The judgement is a relatively small amount (not for the debtor (~$900))
  • The property is paid off
  • The property is valued at ~$150k
I have read that if you have a judgement against someone and they file Chapter 7 that your judgement can get wiped away, but what if you put the lien on the house, or is a lien and judgement basically on in the same?

If the debtor has that much equity in the property and the total amount of debts is nowhere near the amount of the equity, will the trustee force the debtor to figure something out with the house? ie refinance if possible and cash out?
 
Ok, now with that being said, another hypothetical if you dont mind:
The debtor has a "Tenancy in Common" (TIC) with his mother (debtor 33.7% mother 66.3%). His mother passed away last year and in California it is required by law to proceed with probate with a TIC which he has not done.

From what I understand about probate is that it gives people that are owed money a chance to contest the estate and potentially receive money owed.

Now for the question:
If I were to swoop in before he gets through with probate, does that kind of seal the deal? Meaning, he cant just say "Hey, my mother is gone, here is her death cert. remove her name from the house"; and then just file a BK to discharge it?
 
Now for the question:
If I were to swoop in before he gets through with probate, does that kind of seal the deal? Meaning, he cant just say "Hey, my mother is gone, here is her death cert. remove her name from the house"; and then just file a BK to discharge it?

If he is a TIC, right of survivorship passes the property to him upon her passing.
In essence, the home isn't required to go through probate.

However, any lien you place on a home isn't going to ever cause the home to be sold at auction to satisfy the debt.

The debt, a small consumer related debt and judgment will never cause a homeowner to be ousted.

If the home were ever sold for profit, you might be able to get your $900.
 
If he is a TIC, right of survivorship passes the property to him upon her passing.
In essence, the home isn't required to go through probate.

However, any lien you place on a home isn't going to ever cause the home to be sold at auction to satisfy the debt.

The debt, a small consumer related debt and judgment will never cause a homeowner to be ousted.

If the home were ever sold for profit, you might be able to get your $900.
I believe in CA that is not the case. I am trying to find some statutes for you instead of what people write online but I am failing to do so...
How do you take ownership of property as tenants in common or as joint tenants? What's the difference? - Nolo.com

The part I am referring to is (4th paragraph down):
Holding property as "tenants in common" is another way that two or more people can own real estate together. Unlike joint tenants, tenants in common can hold property in unequal shares. And each of you can leave your interest to beneficiaries of your choosing--it won't automatically go to the surviving co-owners. In some states, two unmarried people are presumed to own property as tenants in common unless they've agreed otherwise in writing.
I was just curious because technically he has the money (in assets) to pay the judgement, so wouldn't the trustee make him sell his property* to pay off the debt instead of it being totally forgiven? Or am I just completely off base on that? Maybe I just think that before a court allows him to have his debt forgiven, he should at least make an attempt to pay for some of it.

* May not be his house but other property like car(s) motorcycle(s)
 
The part I am referring to is (4th paragraph down):

I was just curious because technically he has the money (in assets) to pay the judgement, so wouldn't the trustee make him sell his property* to pay off the debt instead of it being totally forgiven? Or am I just completely off base on that?

Maybe I just think that before a court allows him to have his debt forgiven, he should at least make an attempt to pay for some of it.

* May not be his house but other property like car(s) motorcycle(s)


You're thinking about bankruptcies other than chapter 7.

In a chapter 7 BK, you're not required to sell assets.

But, a home, a car, furniture, and numerous other assets are exempt from forced sales anyway.

Bankruptcy filers take those exemptions, and as I said, they're NOT forced to sell their primary (and in other cases, a secondary) residence to satisfy a judgment.

Even if I BK weren't involved, all you could do is attach the lien and WAIT, HOPE that if the home were sold for profit, you get paid.

Trust me when I say, there are numerous ways to avoid that lien, even a lien for $100,000 to do nothing more than gather dust.

This is why I believe it's a waste of time to file any small claims court case.
Small claims litigants across this country statistically collect under 5% of the judgments issued nationally.
 
It is only a mere $840 + 0.23 per day and there is no hope of it actually getting paid. It was a counter suit that won but just that thought of this hanging over his head is payment enough :p
 
It is only a mere $840 + 0.23 per day and there is no hope of it actually getting paid. It was a counter suit that won but just that thought of this hanging over his head is payment enough :p

Deadbeats don't care.
Deadbeats laugh at actions like that.
In the end, the deadbeat believes he/she/it won because they managed to stymy the judgment holder.
 
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