Contrary to popular belief, you may actually be able to activate lien avoidance in chapter 7 bankruptcy. Going into the process of bankruptcy does not mean that you will be held responsible for or be able to jettison any debt in particular. The amount of leverage that you have throughout the chapter 7 process will mostly be due to the expertise that you have on your side. You can be sure that your opponents will have it. Get the right people to help you, and you will certainly have a better chance of lien avoidance in chapter 7 bankruptcy.
How can I avoid a judgment lien in a chapter 7 bankruptcy case?
You may be able to avoid a judgment against you if the following three things are true about your situation:
First, the lien itself must arise from a money judgment that was issued by a court. Second, you must be able to claim some type of exemption in a certain percentage of the equity of your property. There are many bankruptcy exemptions that you may be eligible for, but you should definitely consult an experienced bankruptcy attorney in order to find out what all of these exemptions might be. Third, the lien must result in a loss of this exempt equity if it were implemented or the property must be sold in order to cover it.
If all of this sounds complicated, it is. The above criteria can be interpreted in many different ways, and the judge can only rule on the presentations that are made in court. If you are unable to represent your presentation with the same professionalism as your opponent, then your opponent may be able to implement liens on you, even if it results in the loss or the forfeiture of your property. This is why the law must be interpreted by a professional for you in order for you to have a fair day in court.
When do I have a chance to use judgment liens in your favor?
You can and should use lien avoidance in any situation that you can. If a lien can be wiped out because of a bankruptcy proceeding, take advantage of this situation. This can be helpful even if you are not trying to keep the property or the asset with the lien on it. You may be able to sell it free and clear in order to help with other aspects of your financial situation.
If you want to keep things more simple, then you can avoid liens only on property that is completely exempt from judgment. Focusing your efforts in this way can leave you with property that you own free and clear without having to pay anything to the creditor.
What is my next move?
Get the help that you need with the established bankruptcy practice of Attorney Jed Shaw. If you are looking to maintain your life while going through a bankruptcy, then give Attorney Shaw a call at 713-750-9038