Bankruptcy invalidating liens Cihatwepcam
For instance, to create a lien on real estate, the mortgage holder (the bank or another lender) must typically record it with the recorder’s office for the county where the real estate exists.
To perfect security interests in cars or business assets, the holder of the security interest must typically record it with whatever statewide or local agency handles recordings under the Uniform Commercial Code (called “UCC recordings”)—usually with the secretary of state.
Next, the creditor must “perfect” the lien (complete the steps necessary to create an enforceable lien) by recording the judgment at the recorder’s office, or by following other provisions outlined in state law.
Once perfected, if the borrower sells real estate in the recorder’s jurisdiction (usually the county), the lien will get paid out of the sales proceeds.
Also, in some cases, it might prevent a tax obligation from being assessed because forgiven debt gets taxed as income.
No one wants to lose money—including lenders—and the risk of loss is especially great when the loan involves a big purchase like a house or car.Credit Card Debt and Judicial Liens All liens don’t come about the same way.