Avoiding Liens Through Bankruptcy

Posted on February 5, 2015 at 7:16am by

Did you know that through bankruptcy, certain liens can be removed from real and personal property?

Sometimes creditors, for example, finance companies such as World Finance, take a lien against household goods, such as a television or computer. Through Chapter 7 or Chapter 13 bankruptcy, an experienced lawyer at The Sader Law Firm can file a Motion to Avoid that lien and have it removed from those items.

Another way creditors obtain a lien is through a judgment. In Missouri, creditors can get a lien against your real estate and personal property by either obtaining a judgment against you in Circuit Court or by obtaining a judgment against you in Associate Circuit Court and recording it as a transcript judgment in Circuit Court. In Kansas, all judgments entered in District Court civil cases automatically put a lien against real estate and personal property, unless they were filed in the Limited Actions courts. Judgments in Limited Actions courts can also be registered in District Courts as well. A judgment lien only applies to property in the county where the judgment is given or in the county where a foreign judgment is registered. By reviewing the information you provide, an experienced bankruptcy attorney at The Sader Law Firm can determine if you have a judgment lien against you and file a Motion to Avoid those judgment liens.

Junior mortgage liens can be removed by stripping off a mortgage in a Chapter 13 bankruptcy. In order to do this, your junior mortgage must be fully unsecured, usually by your being upside down on your first mortgage. An adversary action, which is a separate lawsuit within your Chapter 13 bankruptcy, can be filed by an experienced Chapter 13 bankruptcy attorney at The Sader Law Firm, to have that lien removed against your home. Once the adversary is successfully completed, all plan payments are made in the Chapter 13 case, and you receive your Chapter 13 discharge, that lien will be void.

For more information about how lien avoidance can help you, please contact our office for a free telephone consultation with one of our experienced bankruptcy attorneys.



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