Can I file bankruptcy on a lien placed on my home? 22 Answers as of March 12, 2014

Will bankruptcy dissolve a property lien from past debt? I am on social security disability.

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The Law Office of M Grater LLC
The Law Office of M Grater LLC | Mark O. Grater
After the bankruptcy is filed, you would then file a motion to avoid the lien.
Answer Applies to: Connecticut
Replied: 3/12/2014
Stephens Gourley & Bywater | David A. Stephens
That depends on the kind of lien and whether you have a homestead exemption available.
Answer Applies to: Nevada
Replied: 3/11/2014
Patrick W. Currin, Attorney at Law | Patrick Currin
It depends. If it is just an ordinary judgment lien, a bankruptcy can remove it.
Answer Applies to: California
Replied: 3/10/2014
Michael B. McFarland, P.A. | Michael B. McFarland
If the lien is a result of a judgment, it can be removed. Assuming that the equity in your home is no more than the applicable homestead exemption. You should consult with an experienced bankruptcy attorney to make sure.
Answer Applies to: Idaho
Replied: 3/10/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
You, as the Debtor filing the bankruptcy, have an affirmative obligation to file a motion to void the judgment lien. You can reopen your case and file it later, but it cost more to do it this way. If your Chapter 7 case is still open, now is the time to file that motion.
Answer Applies to: Colorado
Replied: 3/10/2014
    Idaho Bankruptcy Law | Paul Ross
    The bankruptcy can remove the personal liability. The lien will have to be avoided/stripped, but can be done in many circumstances. Visit with an attorney to find out exactly what is available under your specific facts.
    Answer Applies to: Idaho
    Replied: 3/10/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    Yes, you may file bankruptcy and in the process remove the lien by filing a motion to avoid a judicial lien in the bankruptcy court. This will depend on the amount of "equity" that you have in your home and your state's bankruptcy exemption for real property.
    Answer Applies to: Indiana
    Replied: 3/10/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    It depends whether the lien is a voluntary lien you allowed be placed on the property or an involuntary lien. If involuntary, you may file a motion in bankruptcy court to strip the lien off the property if it encumbers your homestead exemption amount.
    Answer Applies to: Nevada
    Replied: 3/10/2014
    Law Office of Marlin Branstetter
    Law Office of Marlin Branstetter | Marlin Branstetter
    In California a bankruptcy will only discharge you from the debt, the property is still liable. You would need to make a motion to the court to have the lien avoided.otherwise the property is still impaired.
    Answer Applies to: California
    Replied: 3/10/2014
    Law Offices of Linda Rose Fessler | Linda Fessler
    No, it will not.
    Answer Applies to: California
    Replied: 3/11/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    It totally depends on what type of lien is on the property and what the property is. Lien removal is not an automatic process. Additional steps must be taken to remove liens that can be removed. For example, a tax lien, a public hospital lien, a mechanics lien, a HOA lien, or any lien created by operation of law cannot be removed by a bankruptcy. A judgment lien against rental property cannot be removed by bankruptcy either. The way a lien can be removed is by filing a motion to avoid if the lien is due to a court judgment and if the lien impairs your homestead exemption rights.
    Answer Applies to: Nevada
    Replied: 3/10/2014
    Danville Law Group | Scott Jordan
    It depends on what the lien is for. For instance, if the lien is a judgment lien, yes, you can have it removed from your property, so long as the judgment is not for fraud. In order to have the lien removed, you will need to file a motion to remove the lien after you filed the bankruptcy petition.
    Answer Applies to: California
    Replied: 3/10/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    You cannot file a bankruptcy "on" a lien (or anything else for that matter). A bankruptcy filing includes all of your assets and all of your liabilities. In bankruptcy, a judgment lien on your property can be avoided only if it impairs your exemption. For instance, if you have $75,000.00 worth of equity and you take the $75,000.00 exemption, a judgment lien would impair (interfere) with your exemption and the lien could be avoided. On the other hand, if you had $150,000.00 worth of equity and you took a $75,000.00 exemption, a $25,000 lien would not impair your exemption and could not be avoided. One last thing, a motion must be filed in order to avoid the lien; it is not automatic.
    Answer Applies to: California
    Replied: 3/10/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It depends. If it is a judgement lien, and the lien "impairs your homestead exemption", yes - but it requires a motion in addition to the bankruptcy. You need to see a lawyer about this. So if your equity is less than your homestead exemption, most likely the motion will work for you. Worst case the lien might only be reduced. See a competent bankruptcy lawyer.
    Answer Applies to: California
    Replied: 3/10/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    The bankruptcy will get rid of the liability for that debt but then you have to file a motion to avoid that lien in order to remove the lien from your house.
    Answer Applies to: New York
    Replied: 3/10/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    It may be possible to get rid if the lien through bankruptcy, but it will require a separate and additional motion to be filed within the bankruptcy case. I suggest you hire a lawyer to assist you.
    Answer Applies to: Colorado
    Replied: 3/10/2014
    Thomas Vogele & Associates, APC | Thomas A. Vogele
    A lien on your house is a secured claim that is unaffected by bankruptcy. Unsecured claims can be discharged but liens and mortgages remain.
    Answer Applies to: California
    Replied: 3/10/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    Bankruptcy does not "dissolve" property liens unless they "impair" your homestead exemption. If the equity in your home does not exceed your homestead exemption, and if the lien would reduce your profit if you were to sell your home, you could file a motion with the bankruptcy court (after filing bankruptcy) and ask the court to order the lien removed. After getting the judgment from the bankruptcy court, you would need to record the judgment in the county property records to prove that the lien has been removed.
    Answer Applies to: Oregon
    Replied: 3/10/2014
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    The answer depends upon the equity in your home.
    Answer Applies to: South Carolina
    Replied: 3/10/2014
    Meister & McCracken Law Firm, PLLC | Joanne M. McCracken
    That depends on the reason for the lien. You should speak with a qualified bankruptcy attorney who can advise you based on your personal situation.
    Answer Applies to: Arkansas
    Replied: 3/10/2014
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    Judgment liens from Creditors placed upon your house can be removed the Chapter 7 bankruptcy by way of the special motion to strip liens from a house where they infringe upon your statutory exemptable equity in the house. If you have enough equity to cover this equity exemption as well as mortgages and the judgment lien however you may not be eligible to strip the lien.
    Answer Applies to: Connecticut
    Replied: 3/10/2014
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Your personal obligation to on the loan will be vanquished by the bankruptcy. However, the lien will remain on the property. In other words, if you still own the house and want to remain in the house, unfortunately bankruptcy can only get rid of your personal liability to pay, meaning that they cannot go after you personally. However, the bank will retain the right to foreclose and retain possession of the house itself. If you don't want to remain in the house, or if the house has already been foreclosed, bankruptcy will vanquish any remaining liability that you may have.
    Answer Applies to: Florida
    Replied: 3/10/2014
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