Bankruptcy Code, right to avoid a lien?

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Bankruptcy Code, right to avoid a lien?

A debtor may avoid a lien that impairs an exemption to which the debtor is entitled if:

  1.  the lien is created by a judicial proceeding such as a law suit;
  2.  Or, if the lien arises in connection with a loan other than a loan to purchase the property to which the lien attaches (such a loan for cash to help with household expenses secured by household furnishings or appliances or secured by a vehicle which the debtor already owns.)

Bankruptcy CodeThe provisions allowing such avoidance to not apply to:

  1.  liens arising by reason of domestic support obligations;
  2.  or in connections with a separation agreement, property settlement, divorce or certain other matter.

There are also limitations on the power to a federal court to upset a final judgment of a state court. Consult your bankruptcy attorney as to these matters.


Frequently consumer contracts contain waivers of the right of a consumer to avoid liens. Any waiver of a right to avoid a lien that is provided by the Bankruptcy Code is unenforceable in a bankruptcy proceeding.

Contact Attorney C. Stephen Gurdin Jr. if you  need Help with bankruptcy.

67 – 69 Public Square, Suite 501
Wilkes-Barre, PA 18701

570.826.0481 | Telephone
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Bankruptcy Code, right to avoid a lien?