Bankruptcy invalidating liens
There are two primary tests which have been employed in determining whether a person or a company is insolvent. The cash flow test provides that a company is insolvent when it is unable to pay its debts as they fall due.The important point is whether or not the company pays its debt in carrying on the business.
If you have liens recorded against your property, you may be able to get rid of them through lien avoidance. A judgment lien is created when someone wins a lawsuit against you and records the judgment against your property. Counsel must serve the Notice, proposed Order, and Motion upon all interested parties including the Trustee. Should a response be filed, then, of course, counsel should prepare for a full hearing on the hearing date. Many times, judicial liens can be avoided through the power of persuasion.That is, you may be able to avoid a lien by convincing the other party that any lawsuit would be a waste of time.In Pennsylvania, a judgment is an automatic lien on real property owned by the defendant in the county in which the judgment is located. Debtor, (debtor’s name), commenced this action on (date of filing), by filing a voluntary petition for relief under Chapter 7 of Title 11 of the United States Code. Jurisdiction of the Bankruptcy Court to hear this motion is provided by 28 U. •The lien would result in a loss of some or all of this exempt equity if the property were sold. If these three conditions are met, you can remove judgment liens from any exempt property, including real estate and cars. You request lien avoidance by checking the column “Property is claimed as exempt” on the Statement of Intention, and by filing a motion with the United States Bankruptcy Court, Eastern District of Pennsylvania under 11 U. The Motion must be accompanied by a proposed Order for Relief, an Order Requiring Answer and Notice of Hearing on Motion and a Certification of Service. After filing a Certificate of No Response, counsel may contact the Judge’s courtroom deputy clerk the day before the hearing to ask that the Judge enter the proposed order or counsel may attend the hearing and inform the Court that no response has been filed. (Creditor) sued and obtained a default judgment which effected a judicial lien on debtor’s property, entered of record at (Court, Court Term and Number). The existence of (creditor’s) security interest in Debtor’s property impairs exemptions to which the Debtor would be entitled under 11 U. A Motion to Avoid Liens must be filed pursuant to Local Bankruptcy Rule 9014-3.