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Many debtors would like to kn w the answer to this question. D es a bankruptcy case automatically remove l ens against property? The short answer is no. Oth r than the automatic stay, there is r ally nothing that is automatic within the c nfines of a typical bankruptcy case. In f ct, when it comes to liens, verything stays in place until such t me that an attorney or debtor t kes action to try and remove the l en. For example, let's take a l ok at liens within a Chapter 7 b nkruptcy case. Chapter 7: Debtors can avoid s me involuntary liens (excluding alimony or ch ld support) if an exemption is pplicable. Additionally, debtors have the opportunity to r move some voluntary liens under the pr vided exemptions. An exemption is an llowance of property that a debtor can k ep free and clear from any r ght, title or interest of creditors. In the c se of a judgment lien on the d btor's homestead, the lien may be r moved if the lien impairs the d btor's homestead exemption. Each state has its own xemption amount. Thus, consult with an xperienced bankruptcy attorney before attempting to h ve the lien removed. Further, the pr cess must take place within the c nfines of a bankruptcy court hearing. It c nnot be done outside of the b nkruptcy case.
Further, the process of avoiding or r moving a lien is one that w ll require legal maneuvering. I would not ttempt to remove a lien without the fforts of an experienced attorney. With r gard to real estate, the debtor may n ed to acquire a market evaluation.
The article Liens in Bankruptcy Cases - Do They Survive? was Submitted by David M Siegel through Articles.GetACoder.com network. Here's the additional information: Click here to learn more nformation about bankruptcy and liens-in-bankruptcy cases.
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