Avoiding (Getting Rid of) Liens in Chapter 7 Bankruptcy

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Lien avoidance is a powerful and important tool available in Chapter 7 bankruptcy. If you have liens recorded against your property, you may be able to get rid of them through lien avoidance. However, you can only "avoid" certain types of liens, and those liens must meet further criteria.

This topic explains what liens are, breaks them down by type, and discusses the various types of liens you can get rid of in Chapter 7 bankruptcy.

Overview

Start here to learn about your options for getting rid of liens in bankruptcy.

Eliminating Liens in Bankruptcy: An Overview
Learn about bankruptcy procedures that allow you to reduce or get rid of liens.

What Are Liens & What Happens to Them in Bankruptcy?

What Is a Judgment Lien?
A judgment lien is created when someone wins a lawsuit against you and records the judgment against your property.

Nonconsensual Liens (Liens You Don’t Agree To)
A nonconsensual lien is one you don't agree to, such as a judgment, execution, or mechanic's lien. Learn more.

What Happens to Liens in Chapter 7 Bankruptcy?
Although your personal obligation on a secured debt may be wiped out in bankruptcy, the lien survives.

Avoiding Liens

Getting Rid of Judgment Liens in Bankruptcy
You may be able to get avoid (get rid of) judgment liens in Chapter 7 bankruptcy.

Avoiding Nonpossessory, Non-Purchase-Money Liens in Bankruptcy
You can get rid of some types of liens in Chapter 7 bankruptcy. Learn more.

Other Options for Dealing With Liens

You can also get rid of liens in Chapter 7 bankrutpcy by redeeming or surrendering the property.

Surrendering Property
If you surrender secured property in bankruptcy, the lien goes too.

Redeeming Secured Property in Bankruptcy
Another way to get rid of a lien is to redeem the property. Here's how.