Ask a Lawyer - Archive
   
Lien lives On
Cathleen Cooper Moran

Q.  A lien was put on my property before I filed a Chapter 7. I contacted the lienholder who said it was not part of the bankruptcy since the lien attached before I filed. Is this true?

-- Anonymous

A. 

The general rule is that liens survive bankruptcy as a claim against property owned when the case was filed. A lien for a pre-bankruptcy debt does not attach to property acquired after bankruptcy.

Liens may be avoided in bankruptcy if they interfere with a claim of exemption to which the debtor was entitled when the bankruptcy was filed. A bankruptcy case may be reopened to allow the debtor to bring a motion to avoid a lien. Your bankruptcy lawyer can help you with this.

-- Cathleen Cooper Moran

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