Many Liens Can Be Avoided
Consumer Bankruptcy Lawyers — Boston, Massachusetts
"What does avoidance of a lien do, and what does it have to do with the bankruptcy process?
Essentially, the avoidance of a lien or liens is closely related to claiming exemptions in bankruptcy. Under normal circumstances, a debtor filing for personal bankruptcy is allowed to exempt certain property from the bankruptcy estate. If a judicial lien exists against this property, the bankruptcy court can remove the lien to the extent that the claim of exemption is being impaired by the lien. Therefore, it is possible to completely eliminate or at least partially avoid a lien and discharge the debt underlying that lien as well, leaving the property in the hands of the debtor, fully protected.
At the Boston, Massachusetts, Law Offices of Richard N. Gottlieb, we offer the voice of experience and provide skilled legal services in all aspects of the bankruptcy process, including lien avoidance. To learn more about how our attorneys can help you — contact us and schedule a free initial consultation today.
Consensual and Nonconsensual Liens
There are two types of liens: consensual and nonconsensual. A consensual lien is basically a situation where you have agreed to use an asset as collateral for a debt. Mortgages and auto loans are good examples of consensual liens. Consensual liens on real estate, like mortgages, are typically not capable of being avoided.
A nonconsensual lien is one that a creditor imposes on you and that essentially gives him or her the right to force you to sell the asset so he or she can be paid. Liens arising out of personal injury judgments against you or taxes are good examples of this type.
One of the main criteria for avoiding liens is that the asset to which the lien is attached MUST otherwise qualify as an allowable exemption under normal circumstances. Consensual liens against houses can be avoided if the house value is less than the value of the lien. This is becoming more and more common as housing prices continue to fall. Nonconsensual liens that can be avoided include judicial liens on exempt property and liens involving your homestead exemption.
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Learn more about lien avoidance — call us in Boston, Massachusetts, or contact us online for a free initial consultation with an attorney. Office hours: Monday through Friday from 9 a.m. to 5 p.m. and by appointment. Cancellations and reschedules require a 24-hour notice or a $25 fee will apply.
