Often a bank or a creditor will attempt to garnish your wages, attach your home or foreclose. You may have a wage garnishment as the result of a lawsuit. You may even have a furniture lien as collateral by a finance company without your knowledge. Second mortgages can be eliminated if they have no equity in the property and often lenders even fail to properly record car liens within 10 days and car liens can even be avoided.
Void Liens & Wage Garnishment
You may be able to void liens on your home or property when you file a bankruptcy, if you tell your attorney you need this done. Normally consensual and judicial liens can be avoided by language a Chapter 13 plan or by a 522 f motion to avoid the lien. Income tax liens must be handled differently since they are statutory liens. Normally an offer is made to value tax liens. Since the income tax lien attaches to both personal and real property now is not the time to overvalue personal property.
Bankruptcy can offer a way to avoid the a on your home if a creditor has attached your home and is threatening to sell it. Liens from a finance companies on your furniture can often be avoided in bankruptcy by filing a 522 f motion. If your wages or bank account has been garnished you may be able to get that money back.
Did you know that personal income taxes can be bankrupted after just three years after the return became due as long as you have filed your taxes properly and have not had any tax assessments for that tax debt within the 240 days? But to avoid an income tax lien on your property you must normally file a Chapter 13 and repay what you claim is the equity you have in real and personal property.
Local Kentucky bankruptcy rules allow you to avoid a foreclosure if you can repay the arrears on your home within 3-5 years within a Chapter 13. In Indiana and other states Chapter 13 bankruptcy rules are often more liberal. But all states have similar bankruptcy rules.