Removing Liens From Your Home in Bankruptcy
So the hospital sued you, got a judgement for $5,000 and attached a lient to your home? You might be able to strip that lien off in bankruptcy.
Here's how it works:
First, you need equity in your home. Let's say you are under 60 years of age and have no minor kids at home - in bankruptcy you are allowed to keep up to $47,500 of your home equity (twice that if you are married; the number is $95,000 if you are over 60 or have minor kids in the home.) This equity amount is called your EXEMPTION amount.
Second, the lien has to be LESS than your Exemption Equity.
Let's say your home is worth $140k, you owe $100k, and the lien is for $5k. If these factors apply to you, we can remove the lien on your home.
The same basic factors apply if the lien is no your car. Ask the lawyer for more information on removing liens from your car.