Avoiding Liens Through Bankruptcy Mansfield MA
Avoiding Liens Through Bankruptcy
Bankruptcy Information - How to Avoid Liens in Debt Relief and Settlement
∗This information is provided for reference and education only, and Epic Debt Relief makes no guarantees on the accuracy of this information, and urge consumers to seek legal advice for their debt settlement needs.∗
There are many people who face liens on a regular basis. Here are some common questions and information about liens and how to avoid them if you can:
There is a lien on my home, but I don't have the means for debt relief or settlement, so is there a way I can avoid paying the lien and be rid of it?
Bankruptcy alternatives will not get rid of liens, but bankruptcy filing can sometimes remove liens.
How do you avoid a lien?
You have to request from your lawyer to be able to get rid of it when you file bankruptcy. This is not an automatic part of bankruptcy filing, nor is it required when you file. It is an optional situation that you can inquire about.
Who qualifies for this, and how will I know?
There are three things that depend on whether or not a lien can be avoided: property value, bankruptcy exemption laws in your state, and the amount you owe on the liens. If your property is valued at less than the exemption allowed by your state, the court should permit you to avoid the lien. Should the property be worth more, the lien will be reduced. The lien is lowered to the difference between the exemption amount and the value of the property or the amount of the debt, depending on which is less. For example:
If you have a lien of $5,000 on a car, and the car is worth $3,000, but the state only offers an exemption of $2,000, the lien will be reduced to $1,000 after avoidance.
