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.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).