QUESTION
How much does a lien holder get paid in chapter 13
Asked on Feb 18th, 2020 on Bankruptcy - California
More details to this question:
I want to file chapter 13 because I have too much equity in my property even with the homestead exemption to file for chapter 7. There is a civil lawsuit lien on my property. How much does a lienholder get paid in chapter 13? and does my entire monthly payments go to the lienholder first until the debt is satisfied? then, do other creditors in my bankruptcy get paid the remainder of the payment term secondly? How does this work? also, is there any possible way to remove this civil lien before I file for chapter 13 despite too much equity in my property?
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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3 Awards
In a Chapter 13, a judgment lienholder must be paid in full with interest during your plan term, unless you are able to avoid (remove) the lien.
Judgment liens can be removed if certain criteria are met, which depends on the value of the property, amount of other liens against the property, and amount of your homestead exemption.
Chapter 13 is very complicated and your questions indicate that you badly need an attorney to represent you.
If you are in the Greater Los Angeles Area and would like a free consultation to go over everything, please visit https://www.bklaw.com/consultmain/
Answered on Mar 03rd, 2020 at 8:42 PM