If a credit card lien is wiped out in foreclosure, does it still follow the debtor’s other property because the lien wasn’t part of any bankruptcy?

The lien on real property was from a credit card debt but the debtor didn’t file for bankruptcy and the lien was wiped out by a foreclosure. Can the creditor find other property to lien after their first lien was not successfully paid?

Asked on July 7, 2012 under Bankruptcy Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If a debtor with a junior lien securing debt recorded on real property has the property foreclosed out by the senior lien, the junior lien (credit card debt) is wiped out as a matter of law and the lien no longer exists.

The only way the creditor can become a secured creditor with some lien at this point is to file suit, obtain a judgment and then record an abstract of judgment also known as a judgment lien.

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