San Fernando Valley Lien Avoidance Lawyers
If another party sues you and wins, they (the creditor) can put a judgment lien on your house. A lien is a claim on the title of your house that grants a creditor ownership of your home if you don’t make restitution. A judgment lien essentially makes your home collateral for your debt. A lien on your house can be troublesome because it makes the title to your property "unclear." In order to sell or refinance a property, it must have a "clear" title. Also, a lien on your house can hurt your home’s equity as well as your credit score. If a lender has placed a lien on a piece of your property, you need to contact a qualified debt reduction attorney immediately. The legal team at the San Fernando Valley offices of Nader & Berneman has been helping Southern California clients get out of debt for over two decades and can do the same for you. For a free consultation, call (800) 568-0707 today.
Lien Avoidance through Bankruptcy
In a worst case scenario, a creditor can execute on its lien, forcing the sale (forced sale) of the property to pay the judgment debt. One way to stall or prevent a forced sale is to declare bankruptcy. While Chapter 7 "straight bankruptcy" and Chapter 13 "adjustment of debt bankruptcy" are quite different, they both allow for the avoidance (dismissal) of judgment liens.
Not all Liens can be Avoided
While judgment liens can be avoided through Chapter 7 or Chapter 13 bankruptcy, most other liens cannot be. Statutory liens, Federal tax liens, vehicle lender’s liens, will not be avoided by bankruptcy. Judicial liens for child or spousal support will not be avoided, as well as mortgage loans. Though bankruptcy will forgive your obligation to pay your mortgage, you probably won’t be able to keep your house.
One way you can possibly keep your home is through the Homestead Exemption. Congress passed this law to help people keep their homes. But, qualifying for the homestead exemption is complicated. To find out if you qualify to keep your home, you’ll need to consult an experienced San Fernando Valley bankruptcy lawyer. The legal team at the Encino offices of Nader & Berneman can sit down with you and point out your best options for eliminating any liens put against your property. Call them at (800) 568-0707 for a free case evaluation.