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Bankruptcy

: Arizona Bankruptcy Attorney Blog

"But the Debt Was Included in the Bankruptcy!" Well, Yeah. But.

By Joseph McDaniel, Esq.

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Okay, let's go over it again.

A properly perfected lien (like a mortgage, a lien on your car, or a judgment line on real property) will survive a bankruptcy discharge.

Your personal liability for most of those liens does vanish when you get your discharge, but the lien does not!

Now, in some cases, you can scrape off a judgment lien on a homestead by filing appropriate pleadings.

But you normally can't file a bankruptcy and just not pay your mortgage and keep the house.

That would be too easy!

On the other hand, remember that it's better to be lucky than smart.

Because in some few cases, you can! At least at to the second mortgage. And third.

But that's a topic for another day.

Full post as published by Arizona Bankruptcy Attorney Blog on December 18, 2010 (boomark / email).

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