Bankruptcy, Motion to Avoid Lien, and Keeping Your Home

July 27, 2010 - PRLog -- What is a motion to avoid lien? Many people who are going through a tough time tend to go to these pay day loan places and put items up for collateral. These items are generally their household goods, such as TV’s, DVD players, play stations, anything that you have in your house, they will take as collateral. When I say they will take, it is in a general sense; they don’t physically come in and take the items. When you become delinquent on these types of accounts is where the demanding of collateral comes into play.

When people file for bankruptcy, either chapter 7 or chapter 13, we can file a motion to avoid the lien on those items. This means that they can’t come and get the items you put up for collateral.

What if you put a car up for collateral? This becomes a different issue. Now the creditor is considered to be a secured creditor. You will have to pay them back if you want to keep the vehicle. Contact your attorney’s office with any additional questions you may have with regards to this.

Yesterday I had a couple that broke my heart to have to talk too. The husband has a terminal cancer. When he dies also goes the $4000 worth of disability income from an insurance policy and social security office. Their home is up for a foreclosure sale because of back taxes that the mortgage company paid and now has increased their house payment from $1600 to $3200. There are some IRS issues from years past which should be able to be taken care through a chapter 13 along with the medical bills so far. They have very little credit card debt so the main thing they need help with is the home.

So we talked about filing the chapter 13 to stop the sale of the home. As long as they can continue making the normal house payment and the chapter 13 payment they will not lose the home. When the husband dies and she can not afford to make the house payment any longer, we will look at doing a conversion to a chapter 7 surrendering the home and any new medical bills that have been incurred since the filing of the chapter 13.

I asked about if there was any life insurance. They were checking on that but had no answer as of yet told them that was protected money if there was any.
I said this a lot that we do not have control of all things that go on in our lives. That’s why there are bankruptcy laws to help with some of the financial things that happen.

For more information visit http://www.bankrupcy-alternative.com/income-limits.html or call us directly. Here is another bankruptcy income http://www.prlog.org/10820370-bankruptcy-needing-car-and-... article and here is another http://www.prlog.org/10817950-bankruptcy-divorce-and-exte... for your reading enjoyment.

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