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.
North Dakota Motion to Avoid Creditor's Lien is a legal procedure that allows individuals or entities to request the court's permission to eliminate or remove a creditor's lien from their property. This motion is typically filed in the bankruptcy court as part of a debtor's attempt to protect their property from being seized or sold to satisfy outstanding debt. In North Dakota, there are primarily two types of motions to avoid creditor's liens: 1. North Dakota Motion to Avoid Judicial Lien: This type of motion is used when a creditor has obtained a judgment against the debtor through a lawsuit. The debtor seeks to eliminate the lien created by the judgment to retain ownership and possession of their property. 2. North Dakota Motion to Avoid Non-Possessory, Non-Purchase Money Security Interest: This motion is relevant for debtors who have granted a security interest to a creditor, typically through a loan, but the creditor does not possess the collateral. The debtor can request the court to avoid this non-possessory security interest to safeguard their property from being seized by the creditor. When filing a North Dakota Motion to Avoid Creditor's Lien, certain steps must be followed closely. These include: 1. Gathering Documentation: The debtor should collect all relevant paperwork, including the creditor's lien documentation, any recorded mortgage agreements, loan documents, and evidence of the lien's impact on the property. 2. Complete the Appropriate Forms: Using the official forms provided by the North Dakota bankruptcy court, the debtor needs to accurately complete the Motion to Avoid Creditor's Lien form. This form requires details such as the debtor's personal information, a description of the lien, creditors involved, and the property subject to the lien. 3. Filing the Motion: After completing all necessary forms, the debtor must file the motion with the bankruptcy court. It is essential to ensure accurate filing, paying any required fees, and serving copies of the motion to all relevant parties involved. 4. Attending the Hearing: The court will schedule a hearing to review the motion. The debtor must attend the hearing and present their case for why the creditor's lien should be avoided. Supporting evidence and legal arguments must be effectively presented to increase the chances of a favorable outcome. 5. Court Decision: Following the hearing, the court will issue a decision either granting or denying the motion. If the motion is granted, the debtor will be able to eliminate the creditor's lien, and the property will no longer be at risk of seizure. Overall, a North Dakota Motion to Avoid Creditor's Lien is a critical legal tool for debtors seeking to protect their assets and property during bankruptcy proceedings. Properly preparing and presenting the motion is crucial to successfully eliminating the lien and achieving a favorable outcome in court.
