In bankruptcy, debtors have the ability to avoid two types of liens, meaning they can remove the lien from the collateral and make the debt unsecured. A lien can be avoided if it impairs a debtor’s exemption to which the debtor would have been entitled if not for the lien. For example, if a debtor […]
BANKRUPTCY: AVOIDING LIENS
In bankruptcy, debtors have the ability to avoid two types of liens, meaning they can remove the lien from the collateral and make the debt unsecured. A lien can be avoided if it impairs a debtor’s exemption to which the debtor would have been entitled if not for the lien. For example, if a debtor […]
BANKRUPTCY: CREDIT COUNSELING AND DEBTOR EDUCATION
The Bankruptcy Code requires that all individuals filing bankruptcy receive credit counseling before their case is filed. Credit counseling must be provided by an agency approved by the Department of Justice’s U.S. Trustee Program. These agencies will charge a fee of around $50. Upon completion of the course, debtors receive a certificate of completion. This […]