Judgment Lien Avoidance in Chapter 7 Bankruptcy
Filing for Chapter 7 bankruptcy offers a number of advantages and benefits to the debtor, most notably the potential to discharge significant portions of debt. An often overlooked factor in many debt situations is the presence of judgment liens, which operate much like secured debts as they are attached to particular pieces of property as collateral. While the presence of a lien can make the otherwise smooth process of Chapter 7 bankruptcy more difficult, it is often possible to get rid of these liens through a process called lien avoidance.
If you are attempting to address your debt situation by filing for Chapter 7 bankruptcy, taking full advantage of the tools and resources offered to you by the bankruptcy court may require the assistance of a skilled Cedar Rapids lien avoidance attorney. To learn more about your rights and options for debt relief, call Hong Law, PLC, today at (319) 294-5853.
Requirements for Lien Avoidance
Non-consensual judgment liens can potentially be removed, but only if they meet all of the following criteria:
- A money judgment issued by a court created the lien
- You have equity in the property attached to the lien which qualifies at least in part for an exemption in Chapter 7
- Enforcing the lien against you would result in a loss of said equity
Taking advantage of lien avoidance is a key element of bankruptcy, even when a lien is secured against property you have no interest in retaining. By selling the property and using it to pay other debts, your financial stability will be greater served.
At Hong Law, PLC, our legal team is committed to providing effective and efficient legal counsel to debtors seeking relief through the bankruptcy system and can potentially help you to utilize the lien avoidance system in order to maximize the benefits of your Chapter 7 bankruptcy. For a no-cost legal evaluation of your case, call our Cedar Rapids Chapter 7 bankruptcy lawyers today at (319) 294-5853.
Coralville, IA 52241
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