Posted by Ben (NJ) on January 28, 2005 at 18:20:24:
it would be “cut off” from the real estate to which it was attached, assuming the parties were properly joined and served. However some judgments may carry
personal recourse against the debtor therefore even if they were cut off, the debtor is still personally liable (like a deficiency judgment). It depends on the type of judgment lien.
Judgment Lien wiped-out in foreclosure? - Posted by TW-OH
Posted by TW-OH on January 28, 2005 at 17:11:22:
I know that a second mortgage would be because it’s a voluntary specific lien but what about an involuntary general lien? Can a person still garnish the debtor’s wages if the judgment creditor was named as a codefendant and not paid-off with the auction proceeds?
If it matters I’m in OH.
Re: Judgment Lien wiped-out in foreclosure? - Posted by JT-IN
Posted by JT-IN on January 28, 2005 at 21:06:12:
AS Ben said, it is wiped out only as it pertains, and attaches to the RE… it does not discharge the obligation that the Debtor has to pay, created by the Judgment. The only way to eliminate the judgment and reponsbility to pay the balance is 1) Pay the balance due… 2) Pay a smaller, negotiated settlement, in exchange for a discharge of the lien… 3) File Bk, which will discharge the lien and obligation to pay.
There are some exceptions of what type of liens and obligations that can be discharged in Bk… certain types of Tax liens will not, and other debts incurred within a short period prior to filing Bk… A few other rare exceptions exist, but one should consult a Bk Atty for more detail…