Bankruptcy Code, right to avoid a lien?
A debtor may avoid a lien that impairs an exemption to which the debtor is entitled if:
- the lien is created by a judicial proceeding such as a law suit;
- Or, if the lien arises in connection with a loan other than a loan to purchase the property to which the lien attaches (such a loan for cash to help with household expenses secured by household furnishings or appliances or secured by a vehicle which the debtor already owns.)
The provisions allowing such avoidance to not apply to:
- liens arising by reason of domestic support obligations;
- or in connections with a separation agreement, property settlement, divorce or certain other matter.
There are also limitations on the power to a federal court to upset a final judgment of a state court. Consult your bankruptcy attorney as to these matters.
WAIVING A RIGHT TO AVOID LIENS
Frequently consumer contracts contain waivers of the right of a consumer to avoid liens. Any waiver of a right to avoid a lien that is provided by the Bankruptcy Code is unenforceable in a bankruptcy proceeding.
Contact Attorney C. Stephen Gurdin Jr. if you need Help with bankruptcy.
67 – 69 Public Square, Suite 501
Wilkes-Barre, PA 18701
570.826.0481 | Telephone
800.221.0618 | Telephone Toll Free
stephen@gurdinlaw.com | email
