Los Altos, CA Bankruptcy Law Firms & Lawyers

That is a problem plaguing many people who filed for bankruptcy protection. It is somewhat unanticipated that the banks would not foreclose right away, but banks are very shrewd - though some are not, such as Deutsche Bank who is the subject of a lawsuit as a slum-lord because it foreclosed on many properties, which are now in disrepair, etc. Many bankruptcy attorneys are trying to find a good solution to your problem. One solution being explored is to quitclaim the property to the bank, which would remove you from title. You also could transfer title to another entity. While either or both of these solutions may solve your problem, please note that neither of these two solutions has been thoroughly vetted and no attorney-client relationship is intended or formed by this communication.

The lien is because a judgment was obtained against you and an "Abstract of Judgment" was issued by the court an recorded in the County Recorder's Office where your house is located. It attaches as a lien on all real property you own in that Count. That is a judicial lien and it can be avoided by filing a motion to avoid judicial lien in your bankruptcy case on the basis that the lien impairs the homeowners exemption to which you are entitled to protect your home equity (or, if you have no equity now, that you would be entitled to protect equity on your residence in the future when hopefully you will have equity). The debt itself will be discharged in bankruptcy but you will want to remove or avoid the lien since it will be a problem in the future to sell or refinance your home. In order to put a judicial lien on your home, the car loan company must have obtained a judgment and then an Abstract of Judgment. You cannot file an Abstract of Judgment unless you first have a judgment! The company probably sued you a second time and gotten the judgment or got the court to reset the trial date in the original lawsuit. Maybe you did not get the summons in the second lawsuit or the notice of new trial was lost in the mail, eaten by the dog, etc. You can take a look at the court's file and find out what happened if you really curious. Since you are filing bankruptcy, the best way to resolve the problem is to just include that debt in your bankruptcy petition (as required) and file the motion to avoid judicial lien. It will make your bankruptcy case more expensive but there is no better or cheaper solution to resolve the problem.

Unless it serves a different purpose, surety bonds are something you obtain if you're are placed in a position of trust, like a conservator or trustee of someone else's property or estate. In those cases, it's purpose is to provide financial security. You cannot sell it as each person seeking to be a surety must qualify individually. It is merely protection required by another party. Therefore, it is not an asset nor part of your net worth.