What happens to a lien on 401K after bankruptcy? 11 Answers as of June 13, 2011

A lien was placed on my 401K and wages due to a debt that I have with the US Attorney General. I filed bankruptcy in January. The wage garnishment was removed however the lien on my 401K was not removed. How do I have the lien on my 401K removed as well.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Gresham Family & Bankruptcy Law
Gresham Family & Bankruptcy Law | Lillian Suelzle Watson
It depends on the lien. This is called "stripping the lien" from the account. Contact the attorney you used for the bankruptcy filing as every type of lien is different. You may or may not be able to strip the lien off your 401K account. Good luck.
Answer Applies to: Oregon
Replied: 6/13/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
You will need to file a Motion to Remove the Lien. This is not a simple process and you should consult with an attorney to assist you with this.
Answer Applies to: New Hampshire
Replied: 6/10/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Wow, a lien on your 401k? I have never seen that. There are procedures for removing liens in bankruptcy. You might qualify for one. Go see a knowledgeable bankruptcy lawyer and have him or her look at 522(h) of the bankruptcy code.
Answer Applies to: California
Replied: 6/10/2011
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
It depends on the nature of the debt. Some debts are not dischargeable. Assuming it is a dischargeable debt, you usually need to file a motion to remove a lien. It is a separate motion that has to be filed.
Answer Applies to: California
Replied: 6/10/2011
Jackson White, PC
Jackson White, PC | Spencer Hale
What was the lien for? Anyway the first thing I would do is call the Attorney General's office and ask for the lien to be removed.
Answer Applies to: Arizona
Replied: 6/10/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Make a request to the creditor to remove the lien as satisfied in bankruptcy. Otherwise, see an attorney in your jurisdiction to determine whether the courts may force them to remove the lien.
    Answer Applies to: Virginia
    Replied: 6/10/2011
    Brian Walker Law Firm, P.C.
    Brian Walker Law Firm, P.C. | Brian Walker
    Unfortunately, the lien on your 401(k) account should have been removed by motion when your case was open. If the case is open, it may still not be too late. If the case is closed, it may be necessary to file a motion to reopen the case could have the lien removed. You should discuss your options with the attorney who filed your case for you. If you do not have one, you are welcome to call me if you wish.
    Answer Applies to: Washington
    Replied: 6/9/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Liens are not affected by bankruptcy unless you are able to avoid the lien. Most likely that would not be possible in your situation. However, you need to have an experienced bankruptcy attorney review your situation and advice you, particularly since you do not mention the nature of the lien filed by the federal government.
    Answer Applies to: California
    Replied: 6/9/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It sounds like you screwed up in filing a bankruptcy without a lawyer. If the case is over now, you are too late to do anything. If the case is still pending, get a lawyer to file a motion to avoid lien. Let me add that there is no such thing as a debt to the attorney general. I am assuming you owe the government money. Some such debts may be nondischargeable, and a lien removal may not be applicable.
    Answer Applies to: Georgia
    Replied: 6/9/2011
    Daniel Hoarfrost, Attorney at Law
    Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
    Liens are generally not disturbed by bankruptcy.
    Answer Applies to: Oregon
    Replied: 6/9/2011
    Lakelaw - Loop Bankruptcy
    Lakelaw - Loop Bankruptcy | David Leibowitz
    If the 401k plan is lienable to satisfy that debt, the lien may remain. However, I don't have enough information to know if your particular debt is dischargeable or not.
    Answer Applies to: Illinois
    Replied: 6/9/2011
Click to View More Answers: