Can bankruptcy discharge a lien? 16 Answers as of July 02, 2012

In case my lien cannot be discharged, will it become unsecured and secured?

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Attorney At Law | Harry D. Roth
Not enough information The answer is usually not, but sometimes yes.
Answer Applies to: California
Replied: 7/2/2012
Law Office of Pho Ethan Tran PLLC
Law Office of Pho Ethan Tran PLLC | Pho Ethan Tran
Unfortunately, getting your debts discharged in bankruptcy does not remove liens from your home. To do that, you must contact the county recorders office to clear the negative entries from your title. However, not all liens are removable. Liens due to credit card debts can be removed as long as there is not too much equity in your home but a mechanics lien in not removable unless the debt is paid.
Answer Applies to: Texas
Replied: 6/28/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Bankruptcy will discharge a judgment but if the judgment is a lien on real estate then you will have to file a motion to avoid that lien as well as filing your bankruptcy.
Answer Applies to: New York
Replied: 6/28/2012
Olson Law Firm | Edward M Olson
Unless the lien attached within 90 days of your filing for bankruptcy, then no, you cannot remove a lien.
Answer Applies to: Michigan
Replied: 6/28/2012
The Stockman Law Office | Mary Stockman Esq.
If you have a lien that is the result of an unsecured claim, then it is dischargeable. However, to void the lien takes a motion and court order and then the order must be filed with the State or County. It is not as simple as just listing the debt.
Answer Applies to: Florida
Replied: 6/28/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    There is a special procedure that must be used in order to get liens declared null and void. Your lien can be discharged, but you must use an experienced attorney to get it done properly. Getting this done is not usually included in the services that an attorney provides in a bankruptcy. You have to pay more. So, get an experienced attorney to do the bankruptcy for you.
    Answer Applies to: Florida
    Replied: 6/28/2012
    Law Offices of Diann C. Moseley | Diann Moseley
    Technically, the debt you owe will be discharged in bankruptcy which means that you are not obligated to pay the debt secured by the lien. However, bankruptcy does not remove the lien from the county records where the lien was recorded. To remove the lien, you need to file a motion to avoid the lien so that the lien can be removed from your county records. Otherwise, if you were to purchase a house in the future, the lender will pay the lien to remove it and include the amount in your loan. Save yourself a lot of trouble and money, file a motion to avoid the lien before your bankruptcy case is closed.
    Answer Applies to: District of Columbia
    Replied: 6/28/2012
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    A lien is not a debt so it is not dischargeable. The lien is what secures the debt against property. For example, a mortgage or deed of trust secures the money you borrowed to buy the house. If you do not pay the loan then the lien allows the creditor to sell the property to pay the debt. The debt secured by the lien is dischargeable but the lien remains against the property. Judicial (judgment) liens can often be voided in Chapter 7. Liens you agree to put on property (consentual liens like mortages and deeds of trust) and some liens by law (statutory liens such as IRS liens) cannot be voided in Chapter 7 but you may be able to avoid such liens in a Chapter 13 case if you do not have sufficient equity in the property. Second deeds of trust are often avoided in Chapter 13 if there is no equity whatsoever above the balance of the first deed of trust.
    Answer Applies to: California
    Replied: 6/28/2012
    Steven Alpers | Steven Alpers
    Under certain circumstances yes. It usually must be a 2nd mortgage which no longer is supported by the property value, in other words because of falling prices the 1 st mortgage is higher than the value of the house. There are other circumstances but that is the most common.
    Answer Applies to: California
    Replied: 6/28/2012
    Connaghan Newberry Law Firm
    Connaghan Newberry Law Firm | Tara D. Newberry
    Bankruptcy can discharge a lien depending on the type of lien and the type of chapter the case is filed under. Some liens are dischargeable and some are not. Generally, if the type of lien is dischargeable, the bankruptcy discharge "voids" the lien, but to ensure that the lien does not show up on public records, you may want to file a motion with the court while your case is open to "Avoid" the lien and have an order from the Bankruptcy Court recorded in public records to reflect the status of the lien. If the lien has attached to property, then a motion to avoid the lien is necessary. If the lien is not dischargeable, its likely because it is a perfected security interest. Liens that exist from Purchase Money Security Interests are not discharged, but in some instances may be "stripped" off if they are in a 2nd position and wholly unsecured because the value of the property (the collateral) would only payoff the 1st position lienholder. This most often occurs with regard to real estate when a homeowner has a 2nd loan on the property and is underwater on the 1st. If a 2nd lien is stripped, it will then be categorized as unsecured debt that is owed and treated accordingly.
    Answer Applies to: Nevada
    Replied: 6/28/2012
    Weber & Phillips, P.A.
    Weber & Phillips, P.A. | John G. Phillips
    The answer depends on what kind of lien you have. Judgment liens are usually dischargeable and voidable while tax liens are not.
    Answer Applies to: Arkansas
    Replied: 6/28/2012
    Burton Green, Attorney | Burton Green
    Your question cannot be answered with one yes or no. In general the lien of a secured debt is not discharged although the supporting debt that created the lien will be discharged. However, sometimes in a chapter 13 the lien of a second mortgage or equity line debt on real property can be stripped off, thus removing the lien and changing the debt from secured to unsecured, but you must successfully complete the chapter 13 repayment plan that stripped off the lien.
    Answer Applies to: Florida
    Replied: 6/28/2012
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    A bankruptcy will not "discharge" the lien, it discharges your legal obligation to pay the debt. If you want to keep the collateral - pay the debt. A chapter 13 might b e used to address some liens - depending on circumstances. Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy. There is no cost for the initial discussion. Please take time to educate yourself about bankruptcy and to determine which attorney is the best to assist you in the process. Don't assume the attorney is being completely honest about their experience and capabilities. Check them out. Avoid the attorneys who advertise on TV or profess a 100% success rate in their Internet ads. It costs hundreds or thousands of dollars for these ads and someone has to pay for them - the clients. These attorneys mass produce the work and do not offer the client the hands on assistance that is necessary in a well-planned bankruptcy. Normally these firms assign all or most of the work to paralegals and the client rarely talks to an attorney. When interviewing the attorney ask them how long they have practiced bankruptcy law. Ask what percentage of their practice is focused on consumer work. Ask whether they are experienced in both chapter 7 and chapter 13 cases. Ask the attorney for references. Ask about their policy of returning phone calls. They should be committed to answering specific questions about your situation and help you understand your options. If, after talking with them you are still confused about the issues you raised, find another attorney. An attorney is should be your guide through this process. They should educate you, be there to assist you in how to avoid pitfalls and help you plan for your future after bankruptcy. There are hundreds of "bankruptcy" attorneys in Arizona. Of those just a few will fit the criteria set forth above. Again, bankruptcy is a very complicated process and you want to use an attorney who will be there when you need them.
    Answer Applies to: Arizona
    Replied: 6/28/2012
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Depends on the lien in question. Some judgement liens might be removed. Purchase money liens, will not be removed. They will remain secured unless the collateral has been repossessed.
    Answer Applies to: California
    Replied: 6/28/2012
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Except for lien strips in Chapter 13, the court makes no determination as to how much of a lien is secured and unsecured. The lien remains for whatever amount the lender requires, up to the full amount due, to satisfy the lien.
    Answer Applies to: California
    Replied: 6/28/2012
    The Law Office of Nathan D. Borris, Esq.
    The Law Office of Nathan D. Borris, Esq. | Nathan D. Borris
    Bankruptcy can remove liens, though it depends on a variety of factors. What kind of lien is it, and to what collateral is it attached.
    Answer Applies to: California
    Replied: 6/28/2012
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