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Guide to Filing a Motion to Avoid Lien Through Bankruptcy
Avoid Lien Through Bankruptcy
At the Law Offices of Omar Zambrano
we specialize in helping clients protect their assets and financial future during bankruptcy proceedings. One critical tool available to debtors is the ability to file a motion to avoid a lien. This legal action can help eliminate certain liens that impair exempt property, providing a fresh start free from burdensome encumbrances. Our experienced legal team is here to guide you through this complex process, ensuring your rights are protected and you achieve the best possible outcome.
What is a Motion to Avoid Lien?
A motion to avoid lien is a legal process used in bankruptcy to remove specific liens on your property. Liens are claims against your property that creditors use to secure repayment of a debt. While some liens, such as mortgages, are typically not avoidable, other types, like judgment liens that impair exempt property, may be eliminated through this process. By filing a motion to avoid lien, you can protect essential assets like your home, vehicle, or personal property.
Why File a Motion to Avoid Lien?
Filing a motion to avoid lien can provide significant relief during bankruptcy by:
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Protecting Exempt Property: Removing liens that impair your ability to claim exemptions ensures you can retain essential assets.
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Eliminating Debt: Avoiding liens reduces the amount you owe to creditors, simplifying your financial recovery.
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Anti-SLAPP defense to protect your free speech and petition rights.
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Improving Financial Stability: Without liens, you have greater control over your property and finances post-bankruptcy.
Our Process for Filing a Motion to Avoid Lien
Step 1: Case Evaluation
We begin by evaluating your financial situation and identifying any liens that may be subject to avoidance.
Step 4: Court Hearing
If required, we represent you in court, presenting evidence to demonstrate that the lien impairs exempt property and meets the criteria for avoidance.
Step 2: Prepare the Motion
Our legal team prepares a detailed motion to avoid lien, including all necessary documentation to support your case, such as proof of exempt property and the lien’s impact.
Step 5: Final Order
Once the court approves your motion, the lien is removed, and your property is protected.
​Step 3: File the Motion
We file your motion with the bankruptcy court and notify the affected creditors. This initiates the legal process to remove the lien.
Types of Liens That May Be Avoided
Judgment Liens
These arise from court judgments in favor of creditors. If a judgment lien impairs your exempt property, it may be avoided.
Non-Purchase Money Security Interests
These liens involve personal property used as collateral for loans unrelated to the purchase of the property itself. For example, a loan secured by household goods may be avoidable.
Statutory Liens
For homeowners with properties that have declined in value, Chapter 13 bankruptcy provides a powerful tool called lien stripping. If your first mortgage exceeds your home's current value, we can help eliminate wholly unsecured second or third mortgages by reclassifying them as unsecured debt. This process can significantly reduce your overall financial burden.
Take the First Step Toward Financial Freedom
If you’re struggling with debt, including medical bills, repossessions, or foreclosures, the Law Offices of Omar Zambrano can help you take control of your financial future. Contact us today to schedule your free consultation and start your journey to debt relief and stability.
Your financial freedom is just a call away—let us guide you to a brighter tomorrow.