1/26/2010 - How to Discharge Property Liens in Personal Bankruptcy? |
 Personal bankruptcies like Chapter 7 and Chapter 13 cover unsecured debts only. There are exemptions to that as well, like federal student loans, and tax debts. Similarly, a second mortgage lien cannot be discharged in Chapter 7 bankruptcy in a normal case. However, instead of a "mortgage lien", if the mortgage lender had put a "judgment lien" on the house, then it can be removed under bankruptcy.
Judgment lien: It is court ordered lien, secured against a property when the homeowner fails to make the mortgage payments. The homeowner cannot sell off the house before clearing off the judgment lien. Any bill that can land the homeowner in court can result in a judgment lien.
Here is an example to understand how judicial lien can be covered in personal bankruptcy. This is the case of an individual who is purchasing a house priced at $250,000. However, there is no home equity available on it because of the first mortgage. We were approached by the house-owner to fetch a second mortgage. We appealed a "Motion to Remove Judicial Lien". The creditor agreed to the lien of $59,000, and the Motion was approved within the appropriate time. The creditors lost their money because of this simple blinder. Our bankruptcy lawyers know the tactics to save the client's money in every possible way.
In another case, there was a client who applied for bankruptcy under Chapter 7 code. After studying the profile of the client, we discovered that the lender had placed a lien on the debtor's house for a pool. Typically, the pool is considered as collateral. And it is not acceptable to put a lien on a person's property for a secured commodity. Moreover, the client had a second mortgage which was unsecured as the property was short of equity. Filing Chapter 7 bankruptcy would be a loss for the client. So, we converted it to a Chapter 13 case. Thus, the lien for the pool and the second mortgage, both were removed.
What is needed in such cases is experience and acumen of well-established bankruptcy attorneys. We have the best team of experts in bankruptcy. We will the turn around the case to save you your valuable assets and money.
|
|
|
About Me
Get information on Bankruptcy advice with bankruptcy attorneys in all 50 states of USA. We also provide Chapter 7, Chapter 13 and Chapter 11 bankruptcy help too.
Friends
|
