Why Is a Judgment Lien Still on My House After Bankruptcy?
Because a discharge and a lien are two different things. Your discharge wiped out your personal duty to pay the debt. It did not erase a lien that a creditor had already recorded against your house. That lien stays on the title until a court order removes it, it expires, or it gets paid when you sell.
Many people learn this years later, at a closing table or during a refinance. The good news is that Kentucky homeowners can often still get rid of it.
How a Judgment Becomes a Lien in Kentucky
A court judgment does not attach to your house by itself. Under KRS 426.720, the creditor has to take extra steps:
- File a notice of judgment lien with the county clerk.
- Mail you a copy of that notice.
- Include the text of Kentucky’s homestead law, KRS 427.060, with your copy.
The county clerk then enters the notice in the lis pendens records. That is where a title search finds it. The lien covers real estate you own in that county.
If you got a letter years ago that mentioned KRS 427.060, that was probably your lien notice.
Why the Lien Survived Your Bankruptcy
Bankruptcy stops a creditor from coming after you personally. The creditor cannot sue you, call you, or garnish your pay for a discharged debt.
A lien is different. It is a claim against the property, not against you. Unless the lien was removed during the case, it rides along with the house. When you sell or refinance, the title company will want it paid or cleared.
There is one important exception. A lien can only attach to real estate you owned in that county. In In re Norvell, 198 B.R. 697 (Bankr. W.D. Ky. 1996), a creditor had recorded a judgment lien in Jefferson County. The debtor owned no real estate there when he filed. After his discharge, the court held the lien was void and released it. So if you bought your home after filing, an old lien may have nothing to hold onto.
How Kentucky Judgment Liens Expire
Kentucky changed its lien law in 2023. The new rules matter if you are trying to figure out whether an old lien is still alive.
- Liens created on or after June 29, 2023 expire 10 years after the judgment date.
- Liens created before June 29, 2023 expire on the earlier of two dates: the end of the time limit to enforce the judgment, or June 29, 2033.
- One renewal is allowed. The creditor can extend the lien once, for up to five years. It must file a renewal notice at least 120 days before the lien expires and mail you a copy.
- A lawsuit to enforce the lien can hold the expiration date open until that case ends.
So some old liens are simply running out. Others are still very much alive. A title search and a close look at the dates will tell you which you have.
How to Remove a Judgment Lien After Discharge
The Bankruptcy Code lets you avoid this kind of lien if it impairs an exemption you could claim. Most people do this during the case. If it was missed, the case can often be reopened to fix it.
Here is how the math works. Add up three numbers: this lien, every other lien on the house, and your homestead exemption. If that total is more than the home is worth, the lien impairs your exemption. The amount over the home’s value is the part you can remove.
This is where your exemption choice matters a lot. Kentucky’s homestead exemption is $5,000. The federal homestead amount is $31,575.
Example: Your home is worth $180,000. You owe $170,000 on the mortgage. A credit card company holds a $12,000 judgment lien.
- Using the Kentucky list: $12,000 + $170,000 + $5,000 = $187,000. That is $7,000 over the home’s value. You can remove $7,000 of the lien. The other $5,000 stays.
- Using the federal list: $12,000 + $170,000 + $31,575 = $213,575. That is more than $12,000 over the home’s value. The whole lien can come off.
You cannot mix the two lists, so the choice has to work for your whole case. Our guide to how Kentucky and federal exemptions compare explains the tradeoffs.
What the Process Looks Like in Louisville
In the Western District of Kentucky, lien avoidance is done by motion. The court even has a local form for it, called a Motion and Order to Avoid Lien. Every motion needs a separate proposed order.
If your case is closed, the first step is a motion to reopen it. Reopening a Chapter 7 case usually carries a court fee. Under the national fee schedule, it is $260. Once the court signs the order avoiding the lien, the order gets recorded so future title searches show the lien is gone.
Liens This Process Does Not Remove
Lien avoidance covers judgment liens. It does not remove:
- A mortgage you signed.
- A tax lien, like one filed by the IRS.
- Most statutory liens, which arise by law instead of by a court judgment.
Second mortgages have their own rules. See our page on lien stripping and mortgage avoidance for that situation.
If you are still facing the lawsuit and have not been sued to judgment yet, acting early can keep the lien from ever being filed. Our article on defending against Kentucky default judgments covers that stage.
Frequently Asked Questions
No. The discharge ends your personal duty to pay. The lien stays on your real estate unless the court orders it removed, it expires, or it gets paid. Many liens can be avoided with a motion, even after the case has closed.
A title search at the county clerk’s office will show it. Kentucky judgment lien notices are entered in the clerk’s lis pendens records. You may also find the notice the creditor mailed you, which includes the text of KRS 427.060.
Often, yes. Courts often allow a closed case to be reopened so a missed lien can be avoided. There is usually a reopening fee. The key question is whether the lien impairs an exemption you could have claimed.
Yes. Nick Thompson serves Jefferson, Oldham, Bullitt, Spencer, Nelson, and Meade counties. He reviews the lien, your old case, and the numbers at a free consultation. Call 502-625-0905.
Clear the Title Before It Costs You a Sale
An old lien like this can stall a closing or eat into your sale proceeds. Nick Thompson has practiced law in Kentucky since 1991 and handles lien problems in old and new cases alike.
Call 502-625-0905 for a free consultation. Office manager Toni Hardin can help you set up a time. Bring your discharge order, any lien notice you received, and a recent statement for your mortgage.
