Prevent Future Judgment Liens
Bankruptcy can prevent future judgment liens. It usually stops a lawsuit from turning into a judgment, and then a judgment lien on your home.
A Creditor’s Challenge to the Automatic Stay to Pursue a Lawsuit
A creditor may ask the bankruptcy court to let another court finish a lawsuit about liability and/or the amount of damages.
Adversary Proceedings by the Debtor
Sometimes it's in your best interest to force an issue in bankruptcy court by, in effect, suing a creditor in an adversary proceeding.
Statutory Liens in Chapter 7
Statutory liens survive bankruptcy. Chapter 7 may still be able to help in various ways and be your best solution.
A Sample Judgment Lien, Undone
Here's an example showing why a judgment lien on your home is dangerous, and how bankruptcy can solve this problem.
Undoing a Judgment Lien
Bankruptcy can do more than forever discharge your debts. It can undo some bad creditor actions, like a recorded judgment lien on your home.
The Dangerous Judgment Lien
A judgment lien effectively converts a debt that was secured by nothing into one secured by your home.
“Priority” Debts for Injuries from Driving while Intoxicated
If you injured someone by unlawfully driving while intoxicated, the resulting obligation can't be discharged in bankruptcy.
Debt Secured by Judgment Lien Can Often Be Turned into an Unsecured Debt
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.
Prevent a Creditor with an Unsecured Debt from Turning it into a Secured Debt
Because of Chapter 13's much more powerful automatic stay, its ability to prevent judgment liens and tax liens is extremely valuable.
Your Secured Debts
Creditors with secured debts often have much more leverage against you than with unsecured debts.
Preventing a Judgment Lien against Your Home
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.
The Judgment Liens that Can Be “Avoided” from Your Home’s Title
Bankruptcy can't get rid of most creditor liens on what you own. But judgment liens on your home are an exception.
Making Sense of Bankruptcy: Erasing a Judgment Lien from the Title to Your Home in a Chapter 7 “Straight Bankruptcy”
A judgment lien puts a cloud on the title to your home. Bankruptcy can often get rid of the underlying debt and the judgment lien as well.
Making Sense of Bankruptcy: How Filing a Chapter 7 or 13 Case Stops Creditors’ Actions against You
Federal bankruptcy laws override state collection laws, protecting you and your assets from debt collection.
