If an owner of an interest in real property has had a judgment obtained against him or her, this form addresses a release of that judgment lien.
Keywords: Hawaii, Release of Judgment Lien, Creditor, Types Description: In the state of Hawaii, a Release of Judgment Lien by Creditor is a legal document that effectively removes a recorded judgment lien from a debtor's property. When a creditor obtains a judgment against a debtor, they may file a lien on the debtor's real property to ensure that they can collect the debt owed to them. However, there are circumstances in which the creditor may choose to release this lien. There are several types of Release of Judgment Lien by Creditor in Hawaii, including: 1. Voluntary Release: This type of release occurs when the creditor willingly chooses to release the lien. It often happens when the debtor has fulfilled their financial obligations and paid off the debt in full. In such cases, the creditor acknowledges the debt has been satisfied and decides to release the lien. 2. Partial Release: In situations where the debtor has paid off a portion of the debt, the creditor may agree to release a portion of the lien amount. The partial release effectively reduces the amount of the lien on the property and reflects the reduced debt owed by the debtor. This allows the debtor to regain some control over their property. 3. Release due to Bankruptcy Discharge: When a debtor files for bankruptcy, the automatic stay provision goes into effect, preventing creditors from taking any further action to collect the debt. In bankruptcy cases, if the debtor receives a discharge of the debt, the creditor will release the judgment lien by filing the appropriate paperwork and complying with bankruptcy court orders. 4. Release by Court Order: In certain situations, the court may order the release of a judgment lien held by a creditor. This can occur if the court finds that the lien has been improperly recorded, does not comply with relevant laws, or if the debtor successfully challenges the legitimacy of the lien. The Release of Judgment Lien by Creditor in Hawaii is a crucial step in allowing debtors to regain control over their property and providing relief from the financial burden of the debt. It is important for both creditors and debtors to understand the different types of releases and their implications, seeking legal assistance when necessary to ensure proper compliance with the laws and regulations surrounding judgment liens and their releases.
