nonpurchase-money lien

This is the first of a four part series on lien avoidance.  I developed these notes for a presentation I gave to the Central District Consumer Bankruptcy Attorney’s Association, Los Angeles, California.

A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt.  A lien serves to guarantee an underlying obligation.  If the underlying obligation is not satisfied, the creditor may can seize the asset that is the subject of the lien.  In essence, a lien creates an in rem claim against the assets of a debtor against whom the creditor has an in personam claim.

There are many types of liens.  The most common liens against the assets of an individual debtor in bankruptcy are tax liens, liens arising from loans, mechanics liens, HOA liens, and judgment liens.  For those who may be new to dealing with liens in bankruptcy, here is some vocabulary:
Continue Reading Lien Avoidance in Individual Cases – Part 1: Avoidance of Liens Under § 522(f)