Will bankruptcy stop lien on a house? 29 Answers as of September 28, 2011

You have not given enough details for a complete answer. Generally no.

Filing a bankruptcy petition will stop any new liens from attaching, and judgment liens may be voided. The mortgage liens will remain.

You need to speak to an experienced bankruptcy attorney. Bankruptcy will not give you a free house. Secured debts must be paid if you want to keep the property. However, some liens that exceed the value of the property can be removed and discharged. You need to talk to an experienced attorney to determine what benefits you can receive with respect to your house.

Chapter 13 Bankruptcy law in Colorado allows for the stripping of a wholly unsecured junior mortgage.

Your house is a secured asset. You have to decide in bankruptcy if your going to keep it or give it back to the lending institute. Since it is upside down, considering giving it back as it might be a wise option. Then the deficiency can be discharged in your bankruptcy.

Bankruptcy is an automatic permanent stop on any collection actions of any debts. If your house if worth 75k less than the total of liens on the property through a chapter 13 process is possible to remove any liens above the principal one as long as the principal lien is still more than the value of the house. In a chapter 7 you can only eliminate your responsibility to pay any debts but no liens can be removed from the property.

It is possible to strip a 2nd mortgage (or 3rd or 4th) in a Chapter 13 bankruptcy if the house appraises for less than what the first mortgage is worth. However, when you say a lien, are you talking a contractor's lien, an IRS lien, or a 2nd mortgage? All of those can have different answers. Consult with a bankruptcy attorney and they can look at your specific facts and let you know where you stand.

Chapter 13 will allow you to keep the house with payment ongoing as part of the Plan.

If the lien is not the first mortgage, then in some cases the lien may be removed from the property's title and the debt discharged. It depends on the type of lien, the value of the property, the type of bankruptcy you filed, whether it is a primary residence, etc. You need to discuss with your attorney.

If you are asking about a judicial lien (such as an attachment or an execution) that has not yet been recorded or obtained from the Court, then the answer is yes! If you are talking about a judicial lien that has already been recorded, then the answer is yes, in most circumstances. The bankruptcy code allows judicially imposed liens to be removed to the extent they impair your homestead (or other) exemptions.

It depends if you have a second mortgage. You can remove second mortgages in a Chapter 13 if the value of the home is less than the balance of the first mortgage. However, you cannot strip a first mortgage.

There is no such thing as stopping a lien. A bankruptcy attorney, in a 13, MAY be able to strip a 2nd mortgage depending on the numbers. He may also find ways to walk away with no liability.

Bankruptcy does not get rid of liens. The obligation to pay goes away, but if you do not pay, then they can foreclose on the lien.

It depends. What type of lien are you trying to get rid of? What is the value of the house? Is the house your primary residence? Is there other liens that have a higher priority on the home? All these questions are necessary to know whether the lien is avoidable.

Filing bankruptcy will stay collection of all debts, including foreclosure actions. However, if you do not make arrangements to pay the creditor(s) who hold liens against property, then they can request the court to lift the stay, and proceed to foreclosure. The fact that the house is upside down is only relevant (in California) if the loan was not a "purchase money" loan (in other words, used in the original transaction to purchase the house). If it is not a purchase money loan, then after the foreclosure the creditor can come after you for the difference.

A chapter 7 will not remove a voluntary lien on a house. A chapter 13 lien strip can remove a 2nd mortgage lien though.

This is a very broad question. The general rule is that liens ride through bankruptcy unaffected. Thus, in order to remove a lien, if in fact the lien is one that can be removed, you must act affirmatively to do so. The answer to your question depends on many factors including the type of lien at issue, and the type of case you are filing. Speak to an attorney about your situation before filing bankruptcy.

Bankruptcy will stop a creditor from putting a judgment lien on your home if they have not recorded one before filing. Bankruptcy may be used to eliminate judgment liens or junior mortgage liens in certain situations.