Browse terms
Secured debts and liens
Lien avoidance
A bankruptcy procedure that removes certain liens from a debtor's property to the extent they cut into an exemption. 1
Talk to a lawyerHow it works
Only some liens qualify. The first kind is a judicial lien, unless it secures a domestic support obligation. The second is a security interest in household goods and similar personal items, tools of the trade or prescribed health aids, when the lender did not finance the purchase and does not hold the item. Household goods include things like clothing and furniture, but not a car, a boat or works of art. 1
A lien impairs an exemption when the lien, plus all other liens on the property, plus the exemption amount, add up to more than the debtor's interest in the property would be worth without any liens. The lien can be avoided to that extent. 1
It is not automatic. The debtor starts it by filing a motion to avoid the lien or, in Chapter 13, by serving a plan on the affected creditor. The creditor may object by challenging the exemption. 2
A lien that is not avoided stays on the property after the case, even though the debtor is no longer personally liable for the discharged debt. 3
What it covers
| Type of lien | Can it be avoided under this rule? |
|---|---|
| Judgment lien on exempt property 1 | Yes, to the extent it impairs the exemption 1 |
| Judgment lien that secures child support or alimony 1 | No 1 |
| Loan secured by household goods you already owned 1 | Yes, to the extent it impairs the exemption 1 |
| Mortgage, or a loan used to buy the item 1 | No 1 |
Common questions
What happens if I never ask?
Sources
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