What is a Lien?
A lien is a type of security interest. They are issued or granted to assure the payment of a debt or the fulfillment of some other obligation. In other words, it is a claim that a creditor has on a particular piece of a debtor’s property.
There are many types of liens, both voluntary and involuntary (sometimes called consensual and non-consensual). The specifics (and even the names) of liens can be confusing, but the advice of a legal professional, available from the New Orleans bankruptcy attorneys at the Law Office of David D. Kervin, Jr., LLC, can help make things more clear.
Types of Liens
Voluntary liens involve a contract between creditor and debtor and include:
- Mortgages
- Car loans
- Security interests
- Chattel mortgages (chattel is a term referring to movable property such as furniture, cars or livestock)
An involuntary lien usually arises as the result of laws giving creditors the right to guarantee payment through liens on property because of the general nature of the creditor-debtor relationship. They include (but are not limited to):
- Tax liens, which assure payment of taxes
- “Weed liens” that are assessed by government offices to keep a person’s property from becoming a hazard or nuisance to the general public
- Mechanic’s liens assuring payment for work on land or other property
- Attorney’s liens assuring payment for services
Contact Us
Avoiding liens can be a very important part of filing for bankruptcy, and can ease the financial hardship of an already stressful event. If you are interested in learning more about liens and finding out how they can affect your bankruptcy case, call 504-599-5906 to contact the New Orleans bankruptcy attorneys at the Law Offices of the Law Office of David D. Kervin, Jr., LLC.