Generally speaking, a judgment lien is a legal claim on specific property to secure payment of a debt. In some states, a judgment lien is automatically triggered by a court judgment. In others, a creditor must first file a money judgment before a lien can be established. Resource : https://www.scura.com/blog/the-effect-of-an-entered-judgment-and-the-lien-on-real-property-in-your-bankruptcy-case The Effect of an Entered Judgment and the Lien on Real ... Although a lien is a lawful claim, it does not necessarily mean that the property owner can sell the property to pay off the debt. A creditor may attempt to enforce the lien by seizing or selling the property. Alternatively, a creditor may request that wages be withheld to pay off the judgment. If you've recently received a judgment, you may be wondering whether or not you can discharge the liability in a bankruptcy case. The answer is yes, but the process can be complicated. Here are some steps to follow to minimize the effect of a judgment lien in your bankruptcy. The effect of a judgment in a bankruptcy case depends on the state in which you reside. In some states, a judgment lien will attach to all real estate acquired after the judgment was issued. If you have significant equity in your property, you may be able to void your judgment lien by demonstrating that you have enough equity to cover the cost of filing for bankruptcy. A judgment is also a good indicator of how much debt you owe. The amount you owe is typically reduced by the bankruptcy court, although this does not necessarily mean that your debt is completely cleared. You may also be entitled to keep a portion of your property by paying it off under a Chapter 13 repayment plan.
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