Monroe, NY Bankruptcy Law Firms & Lawyers

Depending on your circumstances, you may be eligible to file a Chapter 7 petition, which will discharge all unsecured debt. There are several benchmarks to pass - you must be able to pass the means test, that is an income test whereby you are measured against all others in the community/area where you live. If you are below the median income in your area, you will pass the means test and be allowed to file a chapter 7. If your income is above the median income level, and you do not have sufficient deductions to allow you to meet the income test, you may be required to file under Chapter 13, which is a wage earner's petition, whereby you propose a plan to pay your unsecured creditors back some percentage of what they are owed, depending on court approval of the plan. Bankruptcy can be done pro-se, but it is strongly suggested that you consult an attorney to help you through the process.

The liens against the property at the time of filing remain and "ride through" bankruptcy unless and until the debtor moves to have the liens "scraped off." So the answer is no, the liens will not be released by filing for bankruptcy protection, nor at the time of discharge, for that matter, without something more on your part. You can get a more complete response by taking all relevant papers to a local bankruptcy attorney. Many offer a free half-hour consultation. Take your tax returns, proof of earnings, all outstanding bills, a credit report, your deed and vehicle registration papers, the judgments against you, and a list of monthly expenses so that the attorney can evaluate your case.

Presumably, the damages you sought in this lawsuit had occurred by 2001 and would have been an asset in your bankruptcy case. If you forgot to list these damages & the right to sue for compensation, there is no time restriction on the bankruptcy court to come back and seek this asset.