Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) When was the lien placed on your home?
2) When you referred to the home value, did you mean the equity?
3) What is your attorney trying to have dismissed?
Was the lien placed on the home before the Chapter 13 was filed?
Was the lien placed on the home before the Chapter 13 was converted to a Chapter 7?
Was the motion to avoid the lien filed in the Bankruptcy court?
In general, a lien that is placed on property before a Bankruptcy is filed cannot be removed, unless there is an applicable exemption that would have precluded the lien's attachment at the time it was attached.
Your creditor will try to show that the applicable homestead exemption at the time of filing was not sufficient to avoid the lien. The Homestead Exemption was recently increased from $30,000 for a single person to $40,000, and from $39,000 for a couple to $50,000.
Since the equity in your home at the time of filing was $47,000, the creditor may be able to maintain the entire lien if you were single when you filed, and a lien for $8,000 if you married.