What can you do about a judgment lien filed against you by a creditor or debt buyer that is now out of business?
Law firms like Mann, Bracken that have closed down, filed bankruptcy themselves, or otherwise disappeared still appear as judgment creditors on thousands of credit reports. In many cases, you may have legitimate grounds to challenge these judgments:
In other cases you may be willing to offer money to settle the outstanding debt so that the judgment will be removed from your credit report.
An old adage says that liens "pass through bankruptcy" unaffected. As old adages go, it's right as much as it's wrong. Particularly when referring to judgments against someone's homestead which are normally subject to "avoidance." But a July, 2012 court decision puts that in doubt...
The Bankruptcy Courts in Connecticut have determined that a lien arising from a deficiency judgment from a mortgage foreclosure may not be avoidable in a bankruptcy case. This means that if the mortgage bank has recorded the deficiency judgment against other real estate that you own, you may not use the bankruptcy process to avoid it.
Remember that a deficiency judgment in a foreclosure case is the difference between the balance left on the loan when the real estate is worth less than what is owed. See my prior post on this subject.