Execution liens on your home are like judgment liens, “avoidable” in bankruptcy. But only if the underlying debt can be discharged.
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.
Both Chapter 7 and Chapter 13 can wipe away judgment liens. But doing so under Chapter 13 can be better when used with its other benefits.
The potential ability to get rid of judgment liens from your home’s title is an impressive benefit of bankruptcy.
Letting a creditor get a judgment against you is dangerous, for a lot of reasons. One of the biggest dangers is a judgment lien on your home.
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
Bankruptcy gives you a fresh start by writing off debts. But it can also free up your home by getting rid of or “avoiding” judgment liens. Writing off debts is good. But if a creditor got a judgment against you, and you own a home, most likely that debt has also turned into a judgment lien on the title of your … Read More
An underappreciated benefit of filing bankruptcy is that you can usually remove judgment liens from your home’s title.
If you’re hurting financially and getting pressured to sell your home, first get bankruptcy advice to potentially save you lots of money.
Don’t let a creditor get a judgment against you. File a bankruptcy case before that can happen.
You’ve been sued by one or more creditors. They have a judgment or are about to get one. You can stop them from garnishing your paycheck.
Save your home by “avoiding” judgment liens and “stripping” your second (or third) mortgage off your title.
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