What is a lien avoidance action?

A lien avoidance action is a legal process that allows a debtor to protect certain assets from creditors in New Hampshire. In this process, a debtor can remove, or “avoid” liens that creditors have placed on assets that are owned by the debtor. Liens are legal claims that a creditor places on property that a debtor owns, to ensure they will receive payment if the debtor defaults on the debt. A lien avoidance action can involve a court hearing in which the debtor must prove that their asset is exempt from the lien placed on it. This usually requires that the property in question is necessary for the debtor’s day-to-day livelihood, such as typically means their home, their vehicle, and their income. It is important to note that under New Hampshire law, there are limits to which assets can be exempt from liens. If the debtor is successful in the lien avoidance action, then the court will issue an order to the creditor requiring them to remove the lien from the asset in question. This can be a crucial process for debtors in New Hampshire, as it allows them the opportunity to protect some of their most important assets from creditors, and gives them the breathing room they need to stay afloat and continue making payments on their debts.

Related FAQs

What is a reaffirmation agreement?
What is a preference action?
What is the meaning of “secured debt”?
What is the meaning of “unsecured debt”?
What is the meaning of “creditors’ rights litigation”?
What are the consequences for creditors who violate creditors’ rights laws?
What is a preference action?
What are the different strategies available to creditors to collect on debts?
What is a discharge in bankruptcy?
What is a lien avoidance action?

What is a lien avoidance action?

Related FAQs

Related Blog Posts