Bankruptcy can protect your home from judgment liens. It can stop a lawsuit from becoming a judgment, and then a judgment lien. Judgment Liens Are Dangerous Our last blog post was about how filing bankruptcy can sometimes remove, or “avoid,” a judgment lien from your home. This is a great potential benefit of bankruptcy if a judgment lien has … Read More
One great benefit of bankruptcy is the ability to remove a judgment lien from your home. It’s almost as helpful as writing off that debt. The Problem, and the Bankruptcy Solution Do you have a judgment lien on your home? If so, the debt on that judgment is secured by whatever equity you have in your home. The debt … Read More
Do you have a judgment or HOA lien on your home, or are behind on child or spousal support? Chapter 13 may be much better than Chapter 7. You may need the extra help of Chapter 13 if you have any of the following liens against your home: Judgment lien Homeowner association lien Unpaid child or spousal support Or … Read More
Filing a Chapter 7 case buys you time and can permanently stop judgment liens from hitting your home. Recently we went through a list of ways Chapter 7 buys you time when dealing with debts affecting your home. Included was that filing a Chapter 7 case can “stop a lawsuit from turning into a judgment lien.” That judgment lien … Read More
Here’s an example showing why a judgment lien on your home is dangerous, and how bankruptcy can solve this problem.
Bankruptcy can do more than forever discharge your debts. It can undo some bad creditor actions, like a recorded judgment lien on your home.
A judgment lien effectively converts a debt that was secured by nothing into one secured by your home.
A judgment lien turns an unsecured debt into one secured by a lien on your home. Bankruptcy can undo that, and write off the debt.
A secured debt can be handled like an unsecured debt if you surrender the collateral, “avoid” a judgment lien, or just keep the collateral.
These 10 tools, especially used in combination, can defeat your mortgage debt and other home-based challenges.
Because of Chapter 13’s much more powerful automatic stay, its ability to prevent judgment liens and tax liens is extremely valuable.
Bankruptcy can’t get rid of most creditor liens on what you own. But judgment liens that can be “avoided” on your home are an exception. Our last blog post was about judgment liens, why they are so dangerous, and how both Chapter 7 and 13 types of bankruptcy can deal with them. Today’s blog post explains what determines whether a … Read More