What is Lien Avoidance?
Lien avoidance is a process in bankruptcy by which the debtor may avoid or remove your lien from certain property. A debtor may avoid a lien through a Chapter 13 plan or by filing a motion in a Chapter 7 case. 11 U.S.C. § 522(f) of the Bankruptcy Code allows the debtor the right to avoid judicial liens and certain non-possessory, non-purchase money security interests if the debtor’s non-exempt equity in the property encumbered by your lien is less than the amount of your lien. This process is not available under state law and you should consult an attorney regarding your rights if the debtor seeks to avoid your lien.
