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JoeLawyer
JoeLawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 767
Experience:  Attorney in the practice of Bankruptcy Law since 1996
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Can I file bancruptcy agaist a lienholder to my propert

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Can I file bancruptcy agaist a lienholder to my propert?
Sometimes. You cannot get rid of a mortgage lien, but you can usually get rid of a judgment lien as long as the amount of equity you have in the property does not exceed the amount of equity you are allowed to exempt/protect based on the State law of the State in which the bankruptcy case is filed (pursuant to 11 U.S.C. 522(f)), HERE).

In other words, let's say your house is worth $100,000, and you owe $90,000 on the mortgage. The mortgage cannot be removed in bankruptcy, though if you don't want the house you can file bankruptcy and discharge your liability on the mortgage and give the house back.

But let's say you are keeping it. There is $10,000 in equity ($100,000 value minus $90,000 mortgage balance). Let's say you live in Indiana, which allows you to protect $15,000.00 in equity in your home. Since the amount you are allowed to protect by State law ($15,000) exceeds the amount of equity you have ($10,000), you can file a Motion during the bankruptcy case and wipe out judgment liens on the property.

I hope this helps! Let me know if you have any more questions.

Joe

LEGAL NOTICE: I am only licensed to practice law in certain state(s) and I cannot give legal advice to someone who does not reside in a state in which I am licensed, nor shall anything I say in the above answer or elsewhere on this site be deemed legal advice, even to someone who resides in a state in which I am licensed. Fees I receive for answering questions are paid for information, not for legal advice. This forum is designed to provide general information only, and information herein is not warranted to be correct or applicable in any way since laws may have been misinterpreted herein, since laws change from time to time, and since the impact of those laws on any particular situation varies. The information presented in this site shall not be construed to be formal legal advice nor the formation of an attorney-client relationship. Persons accessing this response are encouraged to seek independent legal counsel in their jurisdiction for guidance regarding their individual circumstances. Do not take any action or inaction based on information presented herein since it is informational and may not be accurate or applicable to you; it merely attempts to give you a basis of knowledge to help you formulate questions to ask a legal or other professional in a face-to-face meeting in your jurisdiction. Joseph Ross does not hold himself out to be a specialist or expert in any area, regardless of assertions made by any third party, and any implication of being an expert or specialist herein is made in error. I hope the information presented above is useful to you. Answer above is (c) Joseph Ross. All rights reserved.
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Customer: replied 7 years ago.
Thank you,good answer,appreciated.It gives me a basic idea about what to do and where to go from here.Again,Thank you!