will filing bankruptcy keep me from borrowing against my home equity

If the lien is in fact illegal, I don't understand why you would file bankruptcy to get rid of it rather than challenging the lien directly. Either way, you either will have trouble or will not have trouble getting the lienholder to remove it. I sometimes see where people have been sued, for example, by credit card companies and a judgment is taken against them. Then, the credit card company files an "abstract of judgment" in the county records. Later, if a title company is looking at approving a loan or sale for title insurance, they may list this judgment as something that has to be cleared in order to issue title insurance. If something like this is what is happening to you, there is a far simpler way to resolve the problem than through bankruptcy. Here is some information about how to remove such a lien: http://www.armstrongattorneys.com/cannot-get-a-home-loan-because-of-an-old-judgment/   There is nothing in bankruptcy that would prohibit you from eventually borrowing against your home equity. But, of course, your credit score may well be hurt by the bankruptcy filing and you may need some time after your discharge to rebuild your credit enough to qualify for a loan.