Getting Rid of Liens

Bankruptcy Attorney

Liens are an important burden to eliminate if possible. If you don’t get rid of liens during a Dayton bankruptcy case, creditors can still take your property or force you to sell as soon as you lag behind on any type of payments.

If you are interested in removing liens, make a point to bring up the subject specifically with your bankruptcy lawyer since it isn’t an automatic part of the bankruptcy process. There are two routes you can explore: surrender or redeem.


Once you understand your list of secured debts, there is usually collateral attached to each item of debt. Collateral is a specific piece of your property that will serve as payment for said debt. Collateral is usually compiled of various types of loans and mortgages.

Surrendering property is the easiest way to eliminate secured debt. While you might not want to do this for all secured debts, it can be a good option if there is property you simply don’t want anymore.


In the case of redeeming property, talk to specific creditors about how much the lien is on particular property items. Hopefully, you and the creditor will be able to decide on a suitable replacement value. After assessing these numbers, you can choose to pay a lump sum for a piece of property, thus redeeming it.

If you have trouble coming to a middle ground with a certain creditor, you have the option to go to court and have a valuation hearing to settle the question of the amount.

The most important thing to remember is to take action. Ask your Dayton bankruptcy lawyer about the best options for you to avoid liens.

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