Things Not to Do Before Filing Bankruptcy, #11

Posted by on Oct 6, 2014 in Bankruptcy | 0 comments

Things Not to Do Before Filing Bankruptcy, #11

Don’t forget to tell your attorney about liens you may have on your home or unpaid judgments so they can be avoided.

 

In bankruptcy, you are allowed a certain value in your property that is considered “exempt” from the bankruptcy claims. If you have liens or unpaid judgments recorded against you, those may impair your ability to claim those exemptions. Your attorney can file what’s called a “Motion to Avoid Lien,” which can remove that lien. When that happens, the lien is removed and cannot be collected by the creditor who filed it. The debt will be discharged in your bankruptcy, so with the lien removed, the debt is gone and allows you the fresh start you need.

 

Your attorney may not be aware of all the liens against you if you don’t tell them. If you’ve lived in another county or state, you need to let your attorney know. I do a check on all liens filed in Georgia, but if I don’t know you used to live in, say, Ohio, and had a lien filed against you there, I wouldn’t know to file paperwork to try to avoid that lien.

 

Reopening your bankruptcy case after it’s been discharged and closed costs money you don’t want to spend, so make sure to let your attorney know about any judgments and liens you have.

 

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