Judgment liens are liens that are placed on your property as a result of a court judgment. In bankruptcy, the treatment of judgment liens depends on the type of bankruptcy you file and the specific laws in your jurisdiction.
Chapter 7 bankruptcy: In Chapter 7 bankruptcy, judgment liens can be stripped off of your property if the value of the property is less than the amount of the debt secured by the lien. This means that the lien would no longer attach to your property and the debt would be treated as unsecured.
Chapter 13 bankruptcy: In Chapter 13 bankruptcy, you can keep your property and pay off the debt secured by the judgment lien over the course of a 3-5 year repayment plan. This can allow you to catch up on missed payments and pay off the debt in full.
It’s important to keep in mind that the specific laws regarding the treatment of judgment liens in bankruptcy can vary depending on the jurisdiction, and it’s important to consult with a bankruptcy attorney to determine the best course of action for your specific financial situation. The attorney can help you understand your options and develop a strategy for resolving your judgment liens in the most favorable way possible.