Section 101(36) of the Bankruptcy Code defines the term “judicial lien” as a lien “obtained by judgment, levy, sequestration, or other legal or equitable process or proceeding.”
Both Chapter 7 and Chapter 13 bankruptcy can remove judicial liens that have been placed on your home by creditors “to the extent that it impairs an exemption” on your home. Liens on your property are not automatically removed when you file. Your attorney must file a Motion to Avoid Lien to get the lien removed. If she fails to do this, the lien remains. If the lien remains, when you sell or refinance your home, you will have to pay off the creditor to have it removed.