List Creditors in Bankruptcy

• Disclose all property that is owned and the names of all the creditors in the bankruptcy case. Provide a description of the property and the type of lien attached to it. List the name and address of the creditor and the amount of the claim. The bankruptcy court mails a notice of bankruptcy filing to all of the creditors and informs the creditors of their right to file a proof of claim. Creditors need to timely file a proof of claim to verify the validity of the debt and assert their rights in the bankruptcy case.
  
  

Motion to Avoid Lien

• Judicial liens are avoidable under the Bankruptcy Code when they prevent the debtor from claiming the full value of a bankruptcy exemption. Nonpossessory and nonpurchase money security interests that impair an exemption are avoidable as well. Bankruptcy court approval is needed to avoid the lien. File a Motion to Avoid Lien with the bankruptcy court. The debtor can assert his rights under 11 U.S.C. §522 to avoid the lien on the property. The debtor's personal liability for the outstanding balance of any general unsecured claims will be relinquished once the case is discharged.
  
  

Motion to Value Collateral

• A debtor can strip off a lien on property when a creditor's lien is completely unsecured due to the current market value of the property. Submit a Motion to Value Collateral to the court. The debtor can claim the right to strip off the lien based on bankruptcy provision 11 U.S.C. §506 and 11 U.S.C. §1322. List all of the creditors with a lien attached to the property and state the amount of their respective claims. The unsecured lien will be removed from the property if the motion is granted by the court and the case is discharged.
  
  

Complete Bankruptcy Case

• Getting the debt discharged requires the debtor successfully complete the bankruptcy case. The debtor must fulfill all of his obligations to the court under the Bankruptcy Code. The court mails the debtor a copy of the discharge order after the trustee has performed a final account of the case. The creditor cannot demand payment from the debtor once the debt is discharged in the bankruptcy.