One of the differences in Virginia between Chapter 7 and Chapter 13 is what types of liens can be removed from real estate in each. In a Chapter 13, you can remove both mortgage liens, under certain circumstances, and judgment liens. In a Chapter 7, you can not remove a mortgage or consensual lien under any circumstances. You may be able to remove a judgment lien.
Part of what I do for any client who has real estate in Virginia that they want to keep is to have a lien search done of the property to see if there are any judgment liens out there. This is very important because you may not find out about a judgment lien on your property until you to sell it. Then you may have to pay off the judgment with interest from the date that it was recorded.
If your property is worth less than or close to what you owe on mortgage liens, you can remove a judgment lien. You do have to have an appraisal done to determine the value of the property. However, the small price for the appraisal is well worth it to remove a lien that could force you to pay thousands of dollars later.
If you own your home and a creditor has taken you to court over a debt, you need to contact us at 757-276-6555 to see if a Chapter 7 bankruptcy can help you.