Will bankruptcy stop lien on a house? 30 Answers as of July 09, 2013

The house is $75,000 upside down.

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Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
The lien will survive bankruptcy unless it is a second mortgage on your primary residence that has no claim to equity. In which case you should file a chapter 13 to wipe out the second mortgage. If this is not your residence, then you can agree to pay what the property is worth, but have to do so within 5 years.
Answer Applies to: Michigan
Replied: 9/28/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Your personal liablity will be discharged but the house will still be on the hook for the security interest .
Answer Applies to: Washington
Replied: 9/21/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Bankruptcy might not stop a lien, however, it can be used to remove a lien. You should speak with a Bankruptcy Attorney to determine your options.
Answer Applies to: New Hampshire
Replied: 9/20/2011
D T Pham Associates, PLLC
D T Pham Associates, PLLC | Duncan T Pham
A bankruptcy filing will stop foreclosure during its pendency.
Answer Applies to: Texas
Replied: 9/16/2011
Dan Wilson Bankruptcy
Dan Wilson Bankruptcy | Dan Wilson
You're asking the wrong question. Why would you want to keep a house that is $75k upside down?
Answer Applies to: Colorado
Replied: 7/9/2013
    G. Anthony Yuthas & Assoc.
    G. Anthony Yuthas & Assoc. | Tony Yuthas
    You have not given enough details for a complete answer. Generally no.
    Answer Applies to: Colorado
    Replied: 9/16/2011
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    Filing a bankruptcy petition will stop any new liens from attaching, and judgment liens may be voided. The mortgage liens will remain.
    Answer Applies to: Mississippi
    Replied: 9/15/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    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.
    Answer Applies to: Colorado
    Replied: 9/15/2011
    Bankruptcy Law Center
    Bankruptcy Law Center | Bill Zurinskas
    Chapter 13 Bankruptcy law in Colorado allows for the stripping of a wholly unsecured junior mortgage.
    Answer Applies to: Colorado
    Replied: 9/15/2011
    Law Office of Robert Sisson | Robert Sisson
    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.
    Answer Applies to: Wisconsin
    Replied: 9/15/2011
    Property and Estate Law, PLC
    Property and Estate Law, PLC | Alisa Lachow-Thurston
    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.
    Answer Applies to: Virginia
    Replied: 9/15/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    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.
    Answer Applies to: Michigan
    Replied: 9/15/2011
    Grace Law Offices of John F Geraghty Jr.
    Grace Law Offices of John F Geraghty Jr. | John F. Geraghty, Jr.
    Chapter 13 will allow you to keep the house with payment ongoing as part of the Plan.
    Answer Applies to: Georgia
    Replied: 9/15/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    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.
    Answer Applies to: California
    Replied: 9/15/2011
    Law Offices of James Wingfield
    Law Offices of James Wingfield | James Wingfield
    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.
    Answer Applies to: Massachusetts
    Replied: 9/15/2011
    Heupel Law
    Heupel Law | Kevin Heupel
    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.
    Answer Applies to: Colorado
    Replied: 9/15/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    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.
    Answer Applies to: Georgia
    Replied: 9/15/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    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.
    Answer Applies to: California
    Replied: 9/15/2011
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    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.
    Answer Applies to: Arizona
    Replied: 9/15/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    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.
    Answer Applies to: California
    Replied: 9/15/2011
    Dan Shay Law
    Dan Shay Law | Daniel Shay
    A chapter 7 will not remove a voluntary lien on a house. A chapter 13 lien strip can remove a 2nd mortgage lien though.
    Answer Applies to: California
    Replied: 9/15/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    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.
    Answer Applies to: California
    Replied: 9/15/2011
    Law Offices of Steven A. Wolvek
    Law Offices of Steven A. Wolvek | Steven A. Wolvek
    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.
    Answer Applies to: California
    Replied: 9/15/2011
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