Judicial lien is a lien obtained by judgment, levy, sequestration or other legal or equitable process or proceeding. If a court finds that a debtor owes money to a creditor and the judgment remains unsatisfied, the creditor can ask the court to impose a lien on specific property owned and possessed by the debtor. After imposing the lien, the court issues a writ directing the local sheriff to seize the property, sell it and turn over the proceeds to the creditor.
Under Bankruptcy proceedings, a creditor can obtain a judicial lien by filing a final judgment issued against a debtor through a lawsuit filed in state court. A certified copy of a final judgment may be filed in the county in which the debtor owns real property. A bankruptcy debtor can file a motion to avoid Judicial Lien. A Motion to avoid Judicial Lien can be filed by a debtor in either a chapter 7 or chapter 13 bankruptcy proceeding. In a Chapter 7 proceeding, an Order Avoiding Judicial Lien will remove the debt totally.
Description: Michigan Motion to Avoid Creditor's Lien A Michigan Motion to Avoid Creditor's Lien is a legal procedure that a debtor can initiate to request the removal or avoidance of a creditor's lien imposed on their property. This motion is designed to alleviate the burden of debt and protect the debtor's assets from being seized or sold to satisfy the creditor's claim. In Michigan, there are several types of motions to avoid creditor's liens, each addressing specific situations or circumstances: 1. Motion to Avoid Judicial Lien: This type of motion is filed when the creditor's lien arises out of a judgment obtained through a court proceeding. The debtor seeks to have the lien avoided based on the presence of exemptions or other statutory provisions. 2. Motion to Avoid Nonpossessory, Nonpurchase Money Security Interest: This motion is used when the creditor's lien arises from a nonpossessory security interest, such as a security agreement or financing statement, and is not related to the purchase money of the property. The debtor aims to remove the lien based on available exemptions. 3. Motion to Avoid Voluntary Lien: This motion applies when the debtor voluntarily grants a lien on their property as collateral for a loan or debt. If the lien impairs the debtor's exemptions, they can seek to avoid it using this motion. 4. Motion to Avoid Mechanic's Lien: This particular motion is utilized when a creditor asserts a lien against the debtor's property for unpaid construction or improvement work. The debtor can request avoidance of the lien if it is deemed excessive or unlawful. By filing a motion to avoid a creditor's lien, the debtor must provide a detailed explanation of why the lien should be removed. This may include demonstrating that the lien impairs their available exemptions, violates Michigan state law, or unjustly encumbers the debtor's property. It is essential for debtors seeking to file a Michigan Motion to Avoid Creditor's Lien to closely follow the applicable legal procedures, including filing the motion with the appropriate court and providing necessary evidence to support their claim. Consulting with a knowledgeable attorney can greatly assist in navigating this complex process and ensuring the best possible outcome.
