Frequently when your debtor files for bankruptcy, they seek to avoid the Judgement that you have on their house through the Bankruptcy Court procedure because it impairs their homestead exemption. While the homestead exemption in Massachusetts might be very high, in the current real estate market, there is frequently more equity than a debtor will admit to the Bankruptcy Court in their bankruptcy petition.
Cellai Law Offices, P.C. has been successful in challenging bankrupt debtor’s valuation of their homes in defense of a judicial lien surviving bankruptcy. Depending upon your judicial lien debtor’s house, location and condition, you could come out of an account debtor’s bankrupt where you have a judicial lien on debtor’s house with your pre-existing secured judicial lien wholly or partially intact.
If you think that the value of your account debtor’s house exceeds the value of the homestead and superior secured liens, you could quite possible come out the other side of a debtor’s bankruptcy with a surviving valid lien.