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<<I saw on NBC news tonight that debt collectors are putting liens on the debtor home for medical debt. My question is if a person files bankruptcy wouldn't that just quash the lien . I just want to know. I realize this not what this board likes to here. I currently have no health insurance and no longer working.

Bankruptcy may, or may not, quash the lien. The thing about a lien on a house is that it doesn't need to be satisfied until the property that the lien is against changes hands, and no payments are required on the lien until the property changes hands. Because of that, a lien on a home, in and of itself, isn't always considered a debt that needs to be relieved by bankruptcy.>>

A lien is just a claim by a creditor. It's designed to give a creditor a chance to file a lawsuit to adjudicate a claim. It typically prevents a property from being sold until that claim has been resolved by a court.

A bankruptcy wont "quash" a lien, but it will also prevent a property from being sold until all issues of debt and assets have been resolved.

If a creditor has a mortgage on a property and is foreclosing on the property, BK will typically prevent that foreclosure from proceeding until the bankruptcy has been resolved, or at least until the BK court gives permission for foreclosure to proceed.

Seattle Pioneer
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