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Judgment

A judgment is basically a piece of paper declaring that you owe a debt that is signed by a judge. The purpose of a judgment is for creditors to collect debt. This will happen when a creditor feels the need to take a step beyond their routine collection attempts of phone calls, emails and letters.

Judgments typically come from credit card lenders, vehicle lenders or mortgage lenders who are seeking money that has not been paid. In order for creditors to obtain a judgment, they are typically required to file a lawsuit seeking the payment of debts. You will first receive notice of a lawsuit entered against you by a creditor before a judgment can be issued. The notice, also called a summons, will detail how long you have before the judgment will be entered against you and what to do to prevent it.

Since a judgment is public record, it will appear on your credit report and can oftentimes significantly lower your credit rating. Judgments typically last for a period of 10 years, although this often varies by state. Creditors may also have the opportunity to renew the judgment near its expiration date.

If you have a judgment lien recorded against any property that you own, filing for Chapter 7 or 13 bankruptcy may be a way to get rid of them.

If you are able to meet the following three conditions, you may be eligible to remove the judgment liens on your property:

  1. The lien was the result of a money judgment that was issued by a court.

  2. The property is your personal residence and you qualify for the exemption.

  3. The property is worth less than the total of all mortgages on the property and your exemption of $125,000.00.

Conditions to meet to remove liens on your property

  • The lien was the result of a money judgment that was issued by a court.
  • The property is your personal residence and you qualify for the exemption.
  • The property is worth less than the total of all mortgages on the property and your exemption of $125,000.00.

If you can avoid a lien, it is advisable to do so especially if they can be completely eliminated. Regardless of whether you want the property, it is recommended if at all possible to avoid liens on any property that qualifies for an exemption. The lien will be deleted without paying any money to the creditor and you will actually own the property.

Partially avoiding a lien can be helpful, although you will eventually have to pay the remaining amount on the lien. Liens usually have to paid off all at once, but some creditors may allow installments.


How Cleveland Bankruptcy Attorneys from LHA Can Help You Today

Whether you’re deep in debt or struggling to stay up with bills, there’s a solution to your financial situation. Need debt relief? The Cleveland bankruptcy attorneys with LHA have the knowledge and experience to fight for your best interest. Contact a Cleveland Bankruptcy attorney today to discuss your options at or email us at advice@clevelandbankruptcyattorney.com.
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