Many times, life throws curveballs at you because of which you might have to take a harsh decision like bankruptcy. Los Angeles based bankruptcy law firm https://recoverylawgroup.com/ handled a case where the petitioner had taken over his mother’s home as she was unable to make payments. The property had no equity when this transaction occurred. Since then the client paid all delinquent house payments, mortgage, and taxes for many years. During this duration, the value of the property increased. However, before selling it for a profit, it was discovered that there were 5 judgment liens against the property. Thus, if the property was to be sold, it could only be done after the liens were paid off. Since the liens amounted to $50,000 it was a tough call, one that would require the assistance of bankruptcy lawyers since bankruptcy is probably the only legal way out of this.
When you file for bankruptcy, judicial liens can be removed from the property. however, to have the liens removed you need to utilize the exemptions entitled on the property. this could have been done by the bankruptcy filer’s mother when she filed for bankruptcy too. Many people do not exercise the option of lien avoidance, especially when they cannot afford to keep the property. you will be surprised to know that avoiding liens is very simple. All you need to do is file a motion and attend court hearings regarding the issue. In the case of the transferred property too, you can avoid liens. Alternately, a previously closed bankruptcy case can be reopened to seek financial relief that was earlier not taken. Since these are complicated processes, having help from professionally qualified lawyers is a boon. Experienced bankruptcy lawyers at 888-297-6023 can help you in sorting out any dilemma you have regarding your bankruptcy paper filing.