Does bankruptcy eliminate liens?

Yes, bankruptcy can eliminate liens. A lien is a legal claim against property that gives the lienholder the right to keep the property until a debt is paid. When someone files for bankruptcy in Indiana, the court issues an automatic stay. This stay means that creditors are not allowed to try to collect on their debts. This includes liens. For example, if you owe money on a car loan, that lender may have a lien on your car. If you file for bankruptcy in Indiana, the lien on your car will be removed and the lender will no longer have a claim on your car. However, not all liens are eliminated with a bankruptcy filing. In Indiana, tax liens, child-support liens, and some other liens are not affected by a bankruptcy filing. This means the lien will still exist, even after your bankruptcy is complete. When it comes to liens being eliminated through a bankruptcy filing, there are a few more things to consider. If you have a lien on your property that you want to keep, you may be able to negotiate a payment plan or other agreement with the lienholder. If not, you may have to include the lien in your bankruptcy filing in order to eliminate it. This means you may need to pay off some of the debt to keep the lien in place. Overall, bankruptcy can help to eliminate certain types of liens, but it is important to contact a qualified lawyer in Indiana and understand which liens may or may not be removed through bankruptcy.

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Does bankruptcy eliminate liens?

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