Bankruptcy can prevent future judgment liens. It usually stops a lawsuit from turning into a judgment, and then a judgment lien on your home.
Bankruptcy can, in the right circumstances, remove a judgment lien from the title to your home. Here are the conditions for pulling this off.
Other bankruptcy benefits for your home include protection against other liens—from judgments, income taxes, and homeowner associations.
A secured debt can be handled like an unsecured debt if you surrender the collateral, "avoid" a judgment lien, or just keep the collateral.
Because of Chapter 13's much more powerful automatic stay, its ability to prevent judgment liens and tax liens is extremely valuable.
Here are more features of Chapter 7 worth knowing and taking advantage of.
Filing bankruptcy can buy you a little time or a lot of time, enough time either to transition to a new home or to save your home.
Getting sued by a creditor is a wake-up call to consider filing bankruptcy. If it's the right thing to do, there are advantages to filing before your deadline to respond to the lawsuit.
If you want to hold onto your home, Chapter 13 gives you many extraordinary advantages.
It's often the combination of tools that come with Chapter 13 that allows you to keep your home. Because Chapter 7 has only some of these tools, sometimes it can't do nearly as much for your home as Chapter 13 can.
A mere list of the many ways that Chapter 13 can help save a home can start sounding dry. So here's a powerful example that shows off some of its extraordinary advantages.
Your vehicle loan, home mortgage, account at the appliance or electronics store, and maybe a debt that's resulted in a judgment lien--these debts with collateral are the ones that grab the most attention during a bankruptcy case. And that includes the attention of the creditors, very interested in "their" collateral.