can a lien be discharged in bankruptcy

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In most cases - NO. Bankruptcy discharges the unsecured personal debts of the individual and not the liens. Since the lien is attached to the property, it can’t be discharged. Either, the debt has to be re-affirmed and an alternate payment plan is formulated to pay it off, or the creditor may seize the property and sell it to obtain the dues. A debtor may however take action and get a court order to eliminate a lien. Thus, it all depends on the type of debt you carry. Federal tax liens can’t be discharged in bankruptcy.

 


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