Removing Liens From Your Home

For many debtors exploring their options on bankruptcy a garnishment is what starts the process.Tulsa Bankruptcy Attorney | Removing Liens From Your Home A garnishment occurs when a creditor successfully sues the debtor and obtains a judgment. The garnishment allows the creditor to deduct a portion of the debtor’s wages. This amount is up to  25% per pay period, until the debt is satisfied. For many people seeking bankruptcy, this financial hardship pushes them to contact an attorney and start the process. However, for debtors who own their own home, a garnishment may not be the worst of their problem. Our Tulsa bankruptcy attorney offers free bankruptcy advice so just call.

In addition to a garnishment, a creditor will get a lien against your home.  A judgment lien is a non-consensual lien.  It goes with county records against the debtor’s property. This is done without the debtor’s consent or knowledge. That lien can prevent you from selling the house in the future. Given the fact that most people don’t know that the lien is in place, it comes as a nasty surprise when the debtor tries to sell.

Removing The Liens:

Fortunately, there are remedies for this situation in bankruptcy. A monetary judgment by a creditor is dischargeable so long as the underlying debt is dischargeable. If the lawsuit regards over a medical bill, credit card debt, unpaid auto loan, the judgment vacates. However, this does not make the lien automatically go away. Because the lien is a separate legal instrument from the debt itself, a separate process must occur to terminate it. That process is the Motion to Avoid a Lien.

To file a motion avoiding lien your attorney requires a copy of the deed. Once the case is filed and the meeting of creditors conducted, the attorney files the motion. The court will give the creditor two weeks to respond to the motion. If there is no response the court will grant the motion. That officially terminates the lien, and should clear up any problems it caused with selling the house.

For some people, uninformed about their lien, they can proceed all the way through their bankruptcy.  Then have it discharged and closed.  Consequently only to find out years later about the lien’s existence when they attempt property sale. This can come as a surprise, as most people simply assume that the bankruptcy took care of all of their problems.  (As noted above, absent the motion, the lien remains). Fortunately, the courts grant relief for people in that situation.

If the lien was from a debt that was discharged in the person’s bankruptcy, even if that bankruptcy was years ago, the court will allow the case to be reopened, and a motion to avoid the lien filed. This does cost a reopening fee, but that fee is certainly worth paying. Once removed so is the lien.

A final word of advice for those seeking bankruptcy services: know your situation. If you are a homeowner, and have been sued by a creditor, and that creditor obtains a judgment, it is entirely possible that they filed a lien against your home. If you think that could be the case, contact your county’s land records office and have them search for any liens against your property. With the proper knowledge, you can start your bankruptcy process better informed and better able to inform your attorney what you need help with. As always, if you have questions about your financial status and are considering bankruptcy, you should contact a local attorney who can provide you with the help you need.

Contact a Tulsa Bankruptcy Attorney:

If you live anywhere in Oklahoma our Tulsa bankruptcy attorney can help you. Our bankruptcy attorney will sit down with you and help determine if bankruptcy is the best solution for you. To get a free consultation call today and speak to a Tulsa bankruptcy attorney.

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