If I’m considering filing bankrupcy for my credit card balances but I have equity in my property, can a lien be placed on it?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I’m considering filing bankrupcy for my credit card balances but I have equity in my property, can a lien be placed on it?
I have a lot of credit card debt. Want to file bankruptcy but have some equity in my property. If I file, could there be a lien placed on my property to pay off my debtors?
Asked on April 23, 2011 under Bankruptcy Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You should consult with a bankruptcy attorney before doing anything. There are two different kinds of bankruptcy, with very different consequences. In brief, under Chapter 7, all your assets--including equity in property--are potentially subject to being sold in order to pay your creditors as much as possible. There are exceptions--certain property is exempt from execution in bankruptcy, and also, if there is a mortgage on the property, that takes precedence--but generally, in Chapter 7, your belongings are assets are used to pay creditors. In Chapter 13, your assets are untouched, but the court will come up with a repayment plan--a very strict, court-ordered budget--which you will have to follow for usually 5 years, to pay creditors.
Filing for bankruptcy has, as you can see, very serious consequences. You should consult with a lawyer about the specifics of your situation to see if bankruptcy--and which kind of bankruptcy--is right for you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.