To Find out If You Can Eliminate or Avoid Liens on Your Property Contact the Cassidy Law Firm for a Free Consultation with an Experienced Monmouth County Bankruptcy Attorney
In some cases it is possible to eliminate liens which are attached to your property when you file for Chapter 7 bankruptcy. Lien avoidance is a process by which you ask the bankruptcy court to eliminate or reduce liens on certain types of exempt property. This procedure can allow you to discharge large amounts of debt and/or keep property. Lien avoidance must be requested in a special legal proceeding in your bankruptcy case. If steps are not taken to petition for lien avoidance, the lien will not be eliminated and will still exist after a chapter 7 bankruptcy has been finalized.
Having liens on your property after successful completion of your bankruptcy can be disadvantageous. A creditor will retain the right to repossess or force the sale of your property if you fall behind on payments. If you have overlooked any liens and your bankruptcy case is closed, it may be possible to reopen your bankruptcy case so that you may file a motion to avoid a lien.
There are also instances when liens may be unavoidable. If the government has placed a lien on your home for unpaid taxes, you may not be able to remove it, even if the debt is discharged in bankruptcy. Another situation in which you may find yourself unable to avoid liens is if you have a home mortgage or home equity loan. Although filing for bankruptcy may alleviate debt, it will not eliminate liens on these types of secured debts.
If you are considering filing for Chapter 7 Bankruptcy and have questions about eliminating or avoiding liens it is advisable that you speak with an experienced bankruptcy attorney. To receive a free consultation with an experienced bankruptcy attorney, contact The Cassidy Law Firm today. The Cassidy Law Firm is conveniently located in Shrewsbury, New Jersey. We provide legal services throughout all of Monmouth County, Ocean County, Middlesex County and all of New Jersey. Contact The Cassidy Law Firm today to receive your free initial consultation.
*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.