What Your Legal Advisor Wants You To Know About Avoiding Judicial Lien In Chapter 7 Bankruptcy

Applicants have different reasons for filing for bankruptcy, including avoiding judicial liens on their property. In many cases, debtors dealing with this issue file for chapter 7 bankruptcy, hoping that the bankruptcy court will cancel the lien. Unfortunately, some are unable to avoid liens even after declaring bankruptcy. This is why it is advisable to seek legal advice before filing. Doing so will help you understand whether you qualify to avoid a judicial lien and how to navigate the legal process. Your legal advisor will also want you to be aware of the following facts before filing for chapter 7 bankruptcy:

Some Debtors Can't Avoid Judicial Liens

Debtors must meet all the requirements set by the court to avoid a lien on their property. If they don't, the court may dismiss their application, which might obligate them to pay the lien before the creditors sell or refinance the property. However, if a debtor meets all the conditions, the court will likely strike the lien entirely. In such a case, debtors do not have to pay any portion of that debt. In addition, the court may allow the debtor to keep the property. As such, this can be a good strategy to save your home so that your family can continue living with stability. You may also have a right to sell the house and use the equity portion of the proceeds to pay other debts.

The Process of Avoiding a Judicial Lien

The procedure of avoiding judicial lien can be challenging to navigate. Therefore, you ought to consider working with a bankruptcy attorney to help ensure that the process is successful. They will start by accurately listing the property you want to save when preparing your application. Your legal advisor will then file a motion requesting the court to avoid the lien. They will do this in compliance with the state laws to prevent hitches that might make you fail to qualify.

It is important to note that bankruptcy laws are complex and difficult to understand. Accordingly, enlisting a lawyer to handle the legal process for you is advisable. This way, you will be sure that they will consider all the bankruptcy laws to help ensure that your application is successful.

Bankruptcy proceedings and negotiations can be daunting, especially when avoiding the judicial lien in chapter 7. This is why it is recommended that you work with a bankruptcy lawyer. They will take all the necessary legal measures so that your case goes smoothly and you achieve your intended result.