 TITLE: Does Bankruptcy Get Rid of Judgments? CONTENT: What Is Lien Avoidance?\n-----------------------\nSome judgment liens can be eliminated, or _avoided_ in legal lingo, in the course of a bankruptcy. A judgment lien is avoided if it applies to property you claim as exempt from liquidation or forfeiture in your bankruptcy.\nIn a Chapter 7 bankruptcy, the debtor's primary vehicle is exempt from liquidation or forfeiture if it's worth less than your state's exemption limit. Any judgment lien against an exempted vehicle you own free and clear can be wiped out through bankruptcy.\nNote that this is distinct from any claim to the vehicle retained by the issuer of the loan used to purchase it. If you are still paying off a loan on the vehicle, bankruptcy may eliminate your obligation to cover delinquent payments on that loan, but the lender's right to repossess the vehicle—a form of lien that's not dependent on a court order—still stands, and you may still lose the vehicle.\nIn a Chapter 13 bankruptcy, it's possible to avoid judgment liens against certain real estate holdings by claiming the real estate as exempt from consideration in the bankruptcy process. Doing so can be tricky, however, because it also eliminates any protection you may have against repaying outstanding debt owed on any mortgage on that property. Because of the potential complexity of claiming exemptions under Chapter 13, it's wise to consult with your lawyer, and perhaps a real estate professional, when considering your options. END