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.
In Wisconsin, a Motion to Avoid Creditor's Lien is a legal process that allows an individual or debtor to seek relief from a creditor's lien on their property. This motion is typically filed in bankruptcy cases, specifically under Chapter 7 or Chapter 13 bankruptcy. When a creditor has obtained a lien on the debtor's property, it means they have a legal claim on that specific asset. This lien can prevent the debtor from selling or transferring the property without paying off the creditor's debt. However, in certain circumstances, a debtor can file a Motion to Avoid Creditor's Lien to remove or avoid this encumbrance. There are two primary types of Wisconsin Motion to Avoid Creditor's Lien which are as follows: 1. Wisconsin Motion to Avoid Creditor's Lien in Chapter 7 Bankruptcy: Under Chapter 7 bankruptcy, debtors can request the court to eliminate a creditor's lien that impairs the debtor's exemptions. If the lien impairs the debtor's exemption, meaning it jeopardizes their ability to protect their assets, this motion can be filed to remove the lien from the property. 2. Wisconsin Motion to Avoid Creditor's Lien in Chapter 13 Bankruptcy: In Chapter 13 bankruptcy, debtors have the opportunity to propose a repayment plan where they make regular payments to their creditors over a specified period. Through a Motion to Avoid Creditor's Lien in Chapter 13, debtors can request the court to eliminate a lien that impairs their ability to achieve a successful repayment plan. In both types of bankruptcy, the debtor's attorney must file a motion with the court, indicating the specific property that is affected by the creditor's lien. The motion should provide detailed information on the nature of the lien, the legal basis for avoiding it, and any supporting evidence or documentation proving that the lien impairs the debtor's exemptions or repayment plan. It's crucial to note that the success of a Motion to Avoid Creditor's Lien depends on various factors, such as the debtor's specific circumstances, the value of the property, and the applicable bankruptcy laws. Hence, it's crucial for debtors to work closely with an experienced bankruptcy attorney to navigate this complex legal process and increase their chances of a favorable outcome. In conclusion, a Wisconsin Motion to Avoid Creditor's Lien is a legal remedy available to debtors wishing to remove a creditor's lien on their property. It provides a mechanism to protect the debtor's assets and rights in bankruptcy cases. Whether filed under Chapter 7 or Chapter 13 bankruptcy, this motion assists debtors in addressing liens that impair their exemptions or repayment plans. Consulting with a knowledgeable attorney is vital to navigate this process effectively.
