A bankruptcy discharge gets rid of a debtor’s personal liability. But the general rule is liens still survive a bankruptcy discharge. Normally a recorded judgment impairs your ability to sell or take out a loan on your house. However, if you file bankruptcy, a debtor can use Section 522(f) of the Bankruptcy Code to avoid a judgment lien.
Bankruptcy stays on your credit report for a period, but it doesn’t mean the end of your financial health. With careful planning and responsible financial behavior, you can rebuild your credit over time.
Your homestead is exempt when you file Chapter 7 unless it appreciates above the homestead amount while the case is open. If this happens, you could lose it unless you file the appropriate pleading.
Bankruptcy discharges most unsecured debt. Student loans are not dischargeable, unless you file a lawsuit in the bankruptcy and prove that the debt is causing an undue burden. This may have gotten a little easier based on new guidance.
Proposition 209 was an Arizona initiative that was overwhelmingly passed by the voters. Although it increased the Arizona exemptions, it has caused confusion.