In bankruptcy judgment or liens against you may be removed entirely if you can qualify for a Chapter 7 petition. When the unemployment rate rises, more people are having a difficult time paying their bills. Creditors become more aggressive in their tactics when trying to collect a debt. They may initiate a lawsuit against you in order to get the money they are owed. If you fail to respond to a lawsuit within a specific period of time, the creditor may be able to obtain a judgment against you. They can take the judgment and have your wages garnished or place a lien on any property that you own.
Under Section 522(f), you can remove most types of judgment liens if the lien impairs an exemption that you would be entitled to claim under the law. Although bankruptcy is a federal law, it is largely state law that determines what property you can an cannot keep when a debtor files for bankruptcy.
If you have a judgment lien against your home and want to learn more about how to remove it in bankruptcy, please feel free to contact us.