What Is a Hospital Lien?
Some states allow hospitals to place liens on personal injury settlements or real property. These liens may survive bankruptcy discharge unless specifically avoided.
Lien Avoidance Under 522(f)
Section 522(f) allows you to avoid judicial liens (including hospital judgment liens) that impair an exemption. File a motion and the court removes the lien.
Statutory Hospital Liens
State statutory liens (created without a judgment) are harder to avoid because 522(f) applies only to judicial liens. The underlying debt is still dischargeable.
Frequently Asked Questions
Does the lien survive bankruptcy?
Judgment liens can be avoided under 522(f). Statutory liens may survive. The underlying debt is discharged either way.
Can I avoid a lien on a personal injury settlement?
Hospital liens on PI settlements are typically statutory and state-specific. Complex area requiring an attorney.
What if a judgment lien was recorded?
File a motion under 522(f). Show the lien impairs your exemption. This is a routine motion.
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