Stop Liens ASAP in Raleigh, NC!
You must file a motion to avoid a lien before
To stop a lien before your bankruptcy is final and discharged or the lien will remain. If the bankruptcy is final, you will have additional Court costs and Attorney fees to re-file or re-open your case to remove any “avoidable” liens. If you file a motion to avoid a real estate lien, you may need to have an appraisal of the property done.
A bankruptcy will stop garnishments of bank accounts and wages.
But, if you wait so long that a wage attachment takes money out of your check, it can be tough or impossible to get the money back.
A Chapter 7 can stop judicial liens
You can stop a lien where you have been sued and the Creditor has attached a lien to your home, but it generally does not stop consensual liens unless they are preferential transfers (where someone was given a lien in exchange for less than what it was worth just before you filed bankruptcy, or if the lien was placed on the property within the 90 days prior to filing the bankruptcy case).
Property may be valued by the Debtor
in a bankruptcy at its appraised, taxed, PVA, or liquidation value (which is what property would bring at an auction). Normally you should value property at auction, liquidation, or wholesale value. You can redeem or buy back personal property from a lien holder, at wholesale value, by redeeming it. You can’t redeem real property (homes). For redemption purposes, cars and other personal property are appraised at liquidation (auction) value under section 722 of the bankruptcy code. Redemption allows you to get your property free and clear by filing a Chapter 7 bankruptcy and paying the creditor the liquidation value or auction value of the item.
If you have been sued,
you may have judicial liens on your real property and we can stop liens. We can stop judicial liens in a bankruptcy IF AND ONLY IF you tell us about them: If you do not tell us about them, we will not be able to avoid them. If we do not get rid of them, you will still have these liens on your home after you have filed your bankruptcy. If you choose to take this risk, you may be forced to pay for the judicial lien in order to keep your property. If you wish to check for these judicial liens on your property, you may have a title check done through a title company or visit the county courthouse in the county in which your property is located so you can research your judgment history. You should do a title check if you have any reason to believe you may have a judgment against you and you own real property that may have a judicial lien on it.
It up to you ask us to stop a lien before the bankruptcy is discharged,
you must provide us with a copy of any such lien, your deed, and an appraisal.
Often finance companies take out liens on your furniture.
When a finance company takes out a loan and secures it with your household goods (furniture and personal items) it is called a non-purchase money security interest. You can avoid these NPMSI liens under the bankruptcy code if you have not taken out the loan within 90 days of filing bankruptcy or if you have not gotten additional funds from the finance company or refinanced the household goods loan within 90 days of filing bankruptcy. If you have refinanced these goods, you may want to wait a few days. Household goods liens should be avoided in your bankruptcy. But you have to tell us about it for us to know about it and to avoid the lien. Even if you do not file a motion to avoid a household goods lien, it is rare and almost unheard of that a company will repossess household goods if you tell them they must get a court order first. Of course, a creditor will repossess household goods if you voluntarily give the goods to them, but if they have to pay attorney fees and court costs to get the furniture they will almost always give up and let you keep it.
A bankruptcy does not normally get rid of consensual liens
(mortgages and car title loans where you agreed to give someone a lien) unless you are willing to give up the property. A consensual lien on a car or mobile home can be removed by redeeming the property. Also, in Chapter 13 you can strip away a second mortgage, but there must be no equity in the home to which the second mortgage can attach. In other words, if the home is worth less than the first mortgage then you can remove the second mortgage in Chapter 13.
The reason that a household goods lien,
which is a consensual lien, can be avoided in Bankruptcy court is because it is an illegal and unfair trade practice that was outlawed by the government over 20 years ago, but finance companies still use it as a tactic to scare people into paying. See also FTC regulation 16 849 CFR ch 1 § 444