Can I stop a lien through bankruptcy?

If a lender has a lien on a piece of property, a specific process must be followed in order for the bankruptcy to remove the lien. Filing bankruptcy, when it applies to the type of debt you have, allows for the debt to be forgiven. If that debt is forgiven, the bankruptcy judge may rule that the lien in place on property is no longer valid. However, this process can be complex and it should be one you work with an attorney on, to ensure the best possible outcome.

Stopping a Lien

In order to stop a lien, a motion to avoid lien is used. This specific legal movement is one conducted by your attorney. It is a request to the bankruptcy court to remove the judgment or lien from the property. Several things should be considered.

• What type of lien is it? If the lien is due to tax debt or another type of undischargable debt, the lien will not be removed until the debt is paid.
• If the lien is from an unsecured lender whose debt will be discharged by the bankruptcy, the judge is likely to remove the lien.

The lender may try to use the lien to take your property. However, if a judge rules in favor of the motion to avoid lien, you no longer have to worry about this occurrence. This is a complex area of bankruptcy law and the type of debt you have will play a role in the process. Discuss your options with an attorney.