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.
Title: Understanding the New Jersey Motion to Avoid Creditor's Lien: Types and Process Description: In New Jersey, individuals facing a creditor's lien may choose to file a motion to avoid the lien, which can provide significant relief from the burden of debt. This article aims to provide a detailed description of what the New Jersey Motion to Avoid Creditor's Lien entails, its importance, and the different types available. 1. Overview of the Motion to Avoid Creditor's Lien in New Jersey: The New Jersey Motion to Avoid Creditor's Lien is a legal remedy available for debtors seeking to remove or "avoid" a creditor's lien on their property. This motion aims to protect the debtor's equity and secure their legal rights, preventing creditors from seizing or liquidating their valuable assets. 2. Types of New Jersey Motion to Avoid Creditor's Lien: a. Judicial Lien Avoidance: This type of motion can be filed by a debtor during the bankruptcy process, specifically in Chapter 7 or Chapter 13 bankruptcy cases. It seeks to eliminate a creditor's lien through the court's involvement, granting the debtor a fresh start towards financial recovery. b. Non-Bankruptcy Lien Avoidance: This type of motion is available outside of bankruptcy and can be filed in New Jersey state courts. Debtors who are not eligible for bankruptcy relief may utilize this motion to avoid liens and regain control over their property. 3. Eligibility for Motion to Avoid Creditor's Lien: To qualify for a New Jersey Motion to Avoid Creditor's Lien, debtors must meet certain criteria, including but not limited to: — The lien impairs a debtor's exemption rights. — The lien has significantly affected the debtor's equity in their property. — The debtor can provide a valid and justifiable reason for seeking lien avoidance. 4. Filing and Process: a. Gathering Required Documentation: Debtors should gather relevant financial records, including information about the lien, current debts, and the value of the property in question. b. Preparing the Motion: The debtor, often with the assistance of legal counsel, will draft the motion, clearly stating the reasons for avoiding the lien and providing supporting evidence. c. Filing with the Court: The completed motion must be filed with the appropriate court, depending on the case (bankruptcy court or state court). d. Court Proceedings: The court will review the motion, conduct hearings if necessary, and evaluate the creditor's objection (if any) before making a final decision. e. Relief Granted: If successful, the court will issue an order avoiding the creditor's lien, restoring the debtor's control over their property, and providing relief from the burden of the debt. In conclusion, the New Jersey Motion to Avoid Creditor's Lien serves as a crucial legal tool for debtors aiming to protect their assets and regain control over their financial stability. By understanding the different types and requirements involved, individuals can navigate this process effectively with the assistance of legal professionals, enabling a fresh start towards a debt-free future.
