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In theory a creditor can force the sale of real property. It is however, seldom allowed when it pertains the primary residence. All states have homestead protection either by state or federal law. Some states have laws prohibiting forced sale of property. It really depends on the state you live in, how the home is titled and the judgment itself. If I knew your resident state I might be of more help in answering your question. Please feel free to email me if you feel I can be of any assistance.

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8y ago
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16y ago

Maybe but not normally. Generally speaking, you can keep your home during a Chapter 7 case so long as you "reaffirm" the debt to the mortgage company during the case. This means you contact the mortgage company and tell them you want a "reaffirmation agreement," then they will send you one and you sign it, they sign it, and you file it with the court. This reaffirmation agreement puts you back on the hook legally for the mortgage debt, but lets you keep your home. In other words, it allows the mortgage to pass through the bankruptcy unscathed. There are a couple of roadblocks to this though: (1) If you are not current on your mortgage payments, the mortgage company will usually not allow you to reaffirm the debt. So, generally people in Chapter 7 must be current on mortgage payments to be able to keep a home in a Chapter 7. (2) If you have too much equity in the home, the Bankruptcy Court may seek to sell the home. In other words, each State says how much equity in residential real estate a person who files bankruptcy in that State may protect. If you go over this amount, the Bankruptcy Court can sell the home to get that unprotected equity to give to your creditors. For example, in Indiana each person may protect $15,000.00 equity in residential real estate. So, if John files bankruptcy in Indiana and he owes $70,000 on his house and his house is worth $80,000, he is fine since he only has $10,000 in equity ($80,000 value minus $70,000 mortgage) and he is safe for up to $15,000. But, say John owes $70,000 on his house and it is worth $150,000. Now, John has $80,000 in equity ($150,000 value minus $70,000 mortgage) and he can only protect $15,000, so the Bankruptcy Court would sell the house, pay off the mortgage, give John his $15,000, and keep the remaining $65,000 to give to creditors. So, to keep a house in Chapter 7 be sure you are current on the mortgage and check and be sure you are within the amount of equity you are allowed to have in your State. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!

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15y ago

The judgment holder can request the court for a forced sale of a primary residence. The action is not a simple procedure and is usually taken as a last resort for the judgment creditor to recover monies owed. In the majority of instances, the homestead exemption will protect the encumbered property from a forced sale. Also, several states (Texas being one) have laws that do not allow a judgment creditor to enforce a sale for of a primary residence.

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Q: Can someone force you to sell your home for a judgment lien that was attached to your property prior to bankruptcy?
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How do i protect my judgment against someone in bankruptcy?

If the judgment debtor is already in bankruptcy, there is nothing you can do. If the judgment is for a debt for which discharge is not allowed, it survives the bankruptcy. If no bankruptcy has been filed, you can try to attach or levy on some property of the debtor that has some value, or equity.


If you file chapter 7 bankruptcy and are discharged can a creditor later put a judgment against you for a mortgage on property you surrendered to them when you filed the bankruptcy?

No. The creditor can foreclose on the property (and virtually always do) since that is the way they get your name off of the deed and someone else's name on it. And, during this foreclosure, they will list you as a defendant since you are the property owner until the sheriff sale takes place. But, when the judgment is rendered in the foreclosure, it should be an "in rem" judgment, which means against the property only, and not an "in personam" judgment, which means against you personally. If they do get an in personam judgment against you, it is usually a good idea to notify the court and let them know about the bankruptcy so they remove the in personam judgment.


How long should you wait after you get your lawsuit to file bankruptcy?

Winning a lawsuit will have no impact on your ability to file for Chapter 7 bankruptcy. If you are a judgment creditor, the judgment might become an asset of the bankruptcy estate and the bankruptcy trust might choose to sell the judgment or enforce the judgment for the benefit of your creditors.. if someone files bankruptcy on as credit card does that a third party has charged on and the debt is cleared dose the third party continue paying for a debt that is no longer there


Are you safe from creditors if you buy the assets of someone in bankruptcy without knowing they are bankrupt?

No, you are not. When someone files bankruptcy the title to their property is held by the trustee in bankruptcy. The bankrupt cannot sell any property therefore, if they do, the title is not clear. You may lose the property to the creditors if someone tracks it down. You would then be out of the property and any money you paid for it.


When filing bankruptcy is the trust property attached and liquided. How would a liquor licenses be affected.?

Bankruptcy rules require that any state and federal taxes be paid prior to the transfer of the liquor license to someone else. The liquor license is considered a negotiable asset.


Can someone have more than one property in chapter 7 bankruptcy?

Yes.


Can a judgment for libel be discharged in bankruptcy?

No. Your finances are irrelavent if you libel someone. But the amount of compensation owed may be reduced at bankruptsy.


What is the top priority when distributing assets from someone declaring bankruptcy?

Secured creditors to the extent of their security on specific property (e.g., mortgage interest on real property)


What if you win a judgment in one state but the property the person owns is in another state?

can someone please answer this question


Can your mother Quitclaim her house to you if there is a judgment lien against the property?

No. The property cannot be transferred, sold nor refinanced until the judgment lien is paid/settled or the judgment holder consents to the act. In California, we see people do it all the time. They file a Quit Claim, and transfer title to the property to someone else. They do not realize, however, that the lien is still on the property. So, if your mother quit claims her house to you, when YOU go to sell it, you will have to pay your mother's judgment. Or, the judgment holder may come after the property with a Quiet Title action. When they prevail with that, then they will do an action to partition the property, and it will be sold.


What exactly is a judgment against you?

Someone has sued you in court and won. The court will issue a judgment lien that the person can use to seize any of your property to pay the amount due.


If someone files for bankruptcy can the Credit Card company take money out of your checking account to try and retrieve some of the debt after they were informed you were filing bankruptcy?

No, once a bankruptcy is filed an automatic "stay" is in place, and creditors cannot pursue any collection action. Even outside of bankruptcy, a creditor cannot arbitrarily garnish a debtor's bank account. The creditor needs to file and win a lawsuit, be granted a judgment and then enforce the judgment as a bank account garnishment.