Does bankruptcy eliminate liens?

Yes, bankruptcy eliminates liens in Michigan. A lien is a legal right to keep possession of a property until a debt is paid in full. A lienholder can repossess your property if you do not make regular payments on the debt. When you file bankruptcy in Michigan, the court can eliminate all liens that have been placed against your property. This is done by a process called lien avoidance. You can file a motion with the court asking them to avoid a lien so that you can keep the property without having to worry about a lienholder taking it away. The court will look at several factors when deciding whether or not to avoid a lien. These factors include the type of lien, the date the lien was recorded, how much the lienholder is owed, and whether the lien was valid. If the court approves your motion, then the lien will be removed and you will no longer be responsible for the debt. However, it’s important to note that filing bankruptcy does not always result in the automatic avoidance of liens. It’s best to speak with a bankruptcy attorney to determine whether or not you can avoid a lien through bankruptcy.

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Does bankruptcy eliminate liens?

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