Bankruptcy invalidating liens
Purchase-money security interests secure loans where the money is used to purchase the security interest.Mortgages and auto loans are the most common examples of this type of secured loan.However, the amount of monetary damages suffered will almost always be an issue, but the court will eventually determine the amount.Of the three burdens the plaintiff carries, collecting a judgment can be the most difficult, particularly where there are no assets to attach--either because there are no significant assets, or all of the assets are protected by exemptions and other means. Most states provide that a judgment expires after 10 to 20 years. However, judgment creditors rarely continue to pursue the collection of a judgment after an initial attempt fails when they realize that the effort will be fruitless.Thus, to understand suspect transactions, it is necessary to define what insolvency means and when do we say the person is insolvent?Simply, insolvency is inability to pay the debt when they become due and payable.
A lien on real property means that the debtor cannot sell the property until all liens are paid. A nonconsensual judgment lien on property can be avoided if all of the following are true: •The lien resulted from a money judgment issued by a court. While a Chapter 7 bankruptcy can eliminate your liability for the debt secured by property, it doesn’t eliminate any liens on the property unless you take the required steps that may be taken to reduce or eliminate the liens. WHEREFORE, Debtor moves this Court for an Order which would cancel and avoid the security interest held by (creditor) in Debtor’s property and for such additional or alternative relief as may be just and proper. But whether you can eliminate or reduce the lien depends on the type of lien and may also depend on the exemptions that you are claiming.Furthermore, if your unencumbered equity is significantly greater than your exemption amount, then the trustee may take it and sell it, pay you your exemption amount, the lienholders their lien amount, and use the rest to distribute to your unsecured creditors.In Pennsylvania, a judgment is an automatic lien on real property owned by the defendant in the county in which the judgment is located. Debtor, (debtor’s name), commenced this action on (date of filing), by filing a voluntary petition for relief under Chapter 7 of Title 11 of the United States Code. Jurisdiction of the Bankruptcy Court to hear this motion is provided by 28 U. •The lien would result in a loss of some or all of this exempt equity if the property were sold. If these three conditions are met, you can remove judgment liens from any exempt property, including real estate and cars. You request lien avoidance by checking the column “Property is claimed as exempt” on the Statement of Intention, and by filing a motion with the United States Bankruptcy Court, Eastern District of Pennsylvania under 11 U. The Motion must be accompanied by a proposed Order for Relief, an Order Requiring Answer and Notice of Hearing on Motion and a Certification of Service. After filing a Certificate of No Response, counsel may contact the Judge’s courtroom deputy clerk the day before the hearing to ask that the Judge enter the proposed order or counsel may attend the hearing and inform the Court that no response has been filed. (Creditor) sued and obtained a default judgment which effected a judicial lien on debtor’s property, entered of record at (Court, Court Term and Number). The existence of (creditor’s) security interest in Debtor’s property impairs exemptions to which the Debtor would be entitled under 11 U. A Motion to Avoid Liens must be filed pursuant to Local Bankruptcy Rule 9014-3.