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  1. #1
    Join Date
    Sep 2016
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    13,916

    Default Enforcement of a Judgment Discharged in Bankruptcy

    A Florida man had a judgment against him, and declared bankruptcy. Before the bankruptcy, his father added him to his home as a joint owner in the belief that this would simplify the eventual inheritance of the home.

    The man's judgment was discharged in bankruptcy. Several years later he and his father tried to refinance his father's home and was told by the title company that he must pay the judgment. How can he be required to pay a judgment that was discharged in a Chapter 7 bankruptcy?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Enforcement of a Judgment Discharged in Bankruptcy

    The issue here appears to be that the creditor obtained a judgment lien, turning the judgment from an unsecured debt to a secured debt. If a creditor obtains a judgment lien prior to the debtor's bankruptcy, the judgment lien remains on the property after the bankruptcy. If that occurred, even though the judgment creditor did nothing to pursue the debt following bankruptcy, it is understandable that a creditor would want the lien satisfied before refinancing.

    If the man was living with his father at the time of the bankruptcy, he should consult his bankruptcy lawyer about the possibility that the lien could be discharged based upon Florida's homestead exemption. Even if not, the bankruptcy lawyer would be a good person to contact in relation to other possible means to challenge the lien.

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