How can filing Bankruptcy end a garnishment, lien, or attachment?
In Bankruptcy, the federal court issues an Order to prevent the Creditor from continuing to try to collect money from you for your debts. This Court Order is considered superior to the Judgment. It stops any garnishment and prevents future attachment of your bank account. Once the Bankruptcy Court issues a “Discharge,” the debt can never be collected. The garnishment and attachment are gone forever. When a judgment is recorded, it creates a lien which affects real estate and title to a mobile hom. Just filing Bankruptcy does not remove the lien because the Creditor does not have to take any action to collect money from you. Unless you do something about it, it stays on the records, affecting the title to your property. You can bring a separate action in Bankruptcy to remove any lien and clear up the title to your real estate. Additional work is involved for this, and there is an additional legal fee for this service. But some kinds of liens cannot be removed through Bankruptcy, such as
