Instructions

File Bankruptcy

1

Contact an attorney that specializes in bankruptcy. Request that the attorney review your financial situation to determine if it is appropriate for you to file for Chapter 7 or Chapter 13 bankruptcy. Bankruptcy is based on federal law and does not vary by state. Chapter 7 bankruptcy is a liquidation where all of your non-exempt assets are liquidated to pay creditors and the majority of debts are forgiven. Exemptions are provided by federal and state law. A Chapter 13 bankruptcy avoids liquidation and allows you to pay off your debts over time pursuant to a court approved plan. Depending on your ability to make payments, the amount of your assets and the quantity of your exemptions, an attorney will recommend the most appropriate chapter of bankruptcy. If bankruptcy is deemed appropriate by an attorney, request that the attorney commence with your bankruptcy case.
2

Request that your attorney file a motion with the bankruptcy court requesting that it remove or in legal terms, "avoid" the judicial lien. Judicial liens can be avoided when filing in bankruptcy if the court finds that the lien impairs an exemption. Exemptions are provided by state and federal law and allow you to claim various real and personal property as exempt from judgment collection. For example, if you have a homestead exemption on your home and there is a judgment lien on the house for $150,000, the court will avoid the lien to the extent that your equity in the house is less than the judicial lien. In other words. if you have no equity in the property, the judicial lien will be completely avoided.
3

Attend the hearing on the motion to avoid the judicial lien. The court will hear any opposition to the motion, in addition to your arguments. If the court agrees with you, the judicial lien will either be partially or totally removed.

Pay Off the Liens

1

Contact the party that obtained the judgment lien, often called the judgment creditor, if you need to make a payment in regards to the lien. Request a payment plan to pay off the judgment that is owed if needed.
2

Pay the judgment creditor based on the agreed schedule -- either the full amount owed at one time or pursuant to a payment plan if needed. Make sure you document your payments by making copies of your checks or bank statements.
3

Ask that the judgment creditor file with the court a satisfaction of judgment after you completely pay off the judgment lien. Request that the judgment creditor record the satisfaction of judgment at the recorder's office and with the Secretary of State, which in effect nullifies the judgment lien.

Appeal the Judgment

1

Contact an attorney as soon as possible after you discover the judgment lien. The law varies from state to state, but there is usually a limited window, often as little as one to three months, after which you may not appeal a judgment. If you can appeal the judgment, request that the attorney do so.
2

Attend the appellate court hearing on the appeal with your attorney. The court will hear arguments from both sides.
3

Receive notice from the appellate court of the outcome of the appeal. If the court rules in your favor, the judgment will likely be vacated. If the judgment is vacated, the judgment lien will be removed.