Avoiding Judgment Liens in Chapter 7 Bankruptcy
One of the most powerful tools available in the process of Chapter 7 bankruptcy is the ability to avoid liens against your property, such as judgment liens which are created when a lawsuit against you is won. These judgment liens can be attached to real estate, your car, or other personal property and act just like secured debts by using the property it is attached to as collateral for payment. Fortunately, these judgments liens can often be gotten rid of through a process known as lien avoidance in Chapter 7 bankruptcy.
At the Russell Van Beustring P.C., our legal team is dedicated to helping debtors to find effective methods of debt relief, and our skilled attorneys will work diligently to find the solution that is right for your unique situation. To learn more about your rights and options for relief, call our Houston Chapter 7 bankruptcy attorneys today at 713-973-6650.
Criteria for Avoiding Judgment Liens
Any non-consensual judgment lien against your property can be avoided in Chapter 7 bankruptcy if the following are true:
- The lien is the result of a money judgment issued by the court.
- At least some of your equity in the property qualifies for an exemption
- The enforcement of the lien would result in lost exempt equity were the property to be sold.
Whenever lien avoidance is available it should be used to its fullest extent in order to maximize the benefits you receive through Chapter 7 bankruptcy.
If you are facing bankruptcy due to significant debt that you are unable to overcome through other means, lien avoidance is often an essential part of returning to financial stability. To learn more about how judgment liens may affect your Chapter 7 bankruptcy, call the Houston lien avoidance lawyers at the Russell Van Beustring P.C., today at 713-973-6650.