A debtor is responsible for making a list of all debts and assets that they hold before they can go through the bankruptcy process. An account of all liens and, specifically, what type of liens they are must also be included in this list. However, there may be some confusion regarding what type of lien a particular debt is. If a debtor is uncertain, they may want to talk about this issue with an experienced legal professional.
If you’re thinking about filing for bankruptcy, but have a question or concern stopping you from going forward, we may be able to help you find the assistance or information you need. To learn more about how to prepare for this legal process, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.
Indicating Types of Liens
In some situations, it can be difficult for a debtor to know exactly what type of lien they should indicate for their bankruptcy paperwork. They may need to indicate any of the following, if applicable:
- Purchase-money security interest – a lien held when a loan is taken out to buy property
- First mortgage – a purchase-money security interest taken for home-buying
- Possessory nonpurchase-money security interest – a lien held by a pawnshop owner if property is pawned
- Nonpossessory nonpurchase-money security interest – a lien held for a loan not used to buy property
- Mechanic or materialman’s lien – a lien that holds property for missed service payments
- Tax lien
- Judgment lien – a lien tied to a lawsuit judgment
- Child support lien
These loans need to be accurately labeled when a debtor files for bankruptcy. If a debtor isn’t certain whether they’ve cited the proper lien on their debt account, an attorney can help with this issue.
Bankruptcy may be able to help you escape from the debt you’ve accrued, giving you a fresh start financially. However, the process can often prove confusing or complicated without some legal assistance. For a free consultation with a qualified legal professional who can explain bankruptcy proceedings and the options available to you, contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.