Does bankruptcy eliminate liens?

In Virginia, bankruptcy does not necessarily eliminate liens, which are legal claims against property. The type of lien that is being challenged in a bankruptcy case will determine the outcome. Secured liens such as mortgages or car loans must be addressed in the bankruptcy; the debtor must either settle the debt or reaffirm the loan. The bankruptcy process may also permit a debtor to strip down or void a secured lien, but this is heavily dependent on individual circumstances and laws. Unsecured liens such as judgments or tax liens may be eliminated in a bankruptcy, depending on the type. For example, judgments entered against the debtor may be resolved through the bankruptcy process. Some liens, such as those relating to child support, cannot be discharged through bankruptcy. To determine if a lien can be eliminated through bankruptcy, individuals should speak to a qualified bankruptcy attorney in the state of Virginia. An attorney can review the individual’s financial situation and advise the best course of action. Through the bankruptcy process, many individuals may be able to resolve their debts and be able to keep their property.

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Does bankruptcy eliminate liens?

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