Will bankruptcy remove a lien?

There are certain situations where bankruptcy will remove a lien. For instance, if there is a judgment lien against your homestead, a motion to avoid judgment lien can be filed in your bankruptcy case, stripping that lien from your house. However, if you have a lien on your vehicle and want to keep the vehicle, the lien will not be stripped and you'll have to pay for the vehicle. If you cannot pay for the vehicle, you can surrender it to the creditor and the lien will be removed because the debt will be discharged.

More Bankruptcy Videos Videos