What is lien stripping? This is an interesting topic for those looking into or exiting a Chapter 13 bankruptcy. There is an application you can use to request to remove a judicial lien against your property. In addition, this can also be used to eliminate a second mortgage or home equity line of credit that you took out on your property. This process helps you further eliminate and reduce your debts, so you can get back to your normal life quickly.
A judicial lien is used in cases where you owe tax arrears or when a creditor places a lien for payment due to construction costs or costs associated with the development of your property. This lien automatically attaches to your home, making it difficult to sell or use your home in the way you would want to. By filing a Chapter 13 bankruptcy petition, you can work out a plan to repay your debt in a way that will allow for the removal of the lien. You may also then file an application to have the lien removed from your home.
In fact, once Chapter 13 bankruptcy is provided to you, the protection means that you will automatically have a stay placed on all credit collection actions. This not only gives you more time to get control of your finances; it also protects you from additional repossessions, foreclosure activities and additional liens.
To learn more about lien stripping and if it’s something you need to do in your case, take a look at our Chapter 13 bankruptcy case. With the right help, you can reduce your debt and get back to a healthy, debt-free lifestyle.by