can I get a judgment lien removed in bankruptcy in financially difficult
times as a homeowner you may find yourself in the
uncomfortable position of owning money you can’t afford to pay
leading a creditor to obtain a judgment lien on your home a lien can impact your ability to sell
your home leading you to wonder if the judgment
lien can be removed in bankruptcy filing a bankruptcy is
not an automatic solution to remove judgment
liens from your property but there is a process called avoiding a
lien which allows a debtor to ask the court
that a judicial lien or non purchase money lien be eliminated
during the bankruptcy process this is how it works when you file for
bankruptcy you’re entitled to keep some of your
property the amounts of certain types of property you are entitled to keep are called
exemptions if the property value of your home is
worth less than the amount of the homestead
exemption which is the amount of equity in your
home that you get to keep the bankruptcy court will allow you to avoid liens on your home to make sure you receive the benefit of the
homestead exemption if the property is worth more
than the exemption the amount of the lien may be reduced so that the lien does not interfere with the exemption portion of the property the new lien amount
will be equal to the difference between the
value of the property and the amount of the exemption it is important to understand that only
judicial liens and non purchased money liens can be
avoided in this way this means that a lien resulting from a
loan for the purchase of property that’s served as its own
collateral such as a car lien cannot be eliminated in a
chapter 7 however the negative equity in a car may be avoided if certain conditions are met in a chapter 13 furthermore if a second lien on your home has no
equity that second lien can be avoided through a chapter 13 bankruptcy but not through a chapter 7 bankruptcy it would be in your best interest to
contact a bankruptcy attorney to help you with this matter