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?