All About Mortgages

2 Responses to “Bankruptcy?”

1. SoCal Attorney on December 17th, 2009 at 2:05 am

   Section 522(f) of the Bankruptcy Code does allow for the removal of a judicial lien in a Chapter 7 case if the lien impairs your homestead exemption. You may also be able to remove the lien in a court-approved Chapter 13 repayment plan.
   You MUST consult local bankruptcy attorney who knows bankruptcy and the homestead exemption laws for your state. Filing bankruptcy will NOT automatically remove this lien and you must follow the proper procedures. Most attorneys will give a fee initial consultation.

2. INACTIVE on December 17th, 2009 at 5:08 am

   Your question can only be answered by a qualified and experienced bankruptcy lawyer that practices in the state of New Jersey. Every state has its own laws on bankruptcy. It sounds like you have enough equity in the home to pay that $60,000 lien so the court may recommend selling the home and paying the lien or getting a home equity loan on the amount owed for the lien. It doesn’t make sense to file for bankruptcy on $60,000 with a $320,000 home. Perhaps it’s time to reduce your lifestyle to a more liveable scale and invest in your future. There are millionaires out there living in modest homes, driving older cars, and wearing Kmart clothes. It’s the people who look rich that are financed to the max. Take a look at your situation and bail out of things you don’t need. You may be able to sell some assets, reduce some liabilities and start fresh with a life more suited to your income. Bankruptcy is not always the answer to debt problems… peristence is!!!

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