N.J.S. 2A:16-49.1 Permits A Debtor To Cancel Liens Against Real Property

Bankruptcy relieves a debtor from debts but does not cancel liens against property of the debtor. In the event a debtor wishes to cancel a creditor's lien against real property the debtor may avail themselves of New Jersey Statute 2A:16-49.1 in certain situations. The debt must be a dischargeable debt to qualify and, if the creditor has levied on the property prior to the bankruptcy filing, the lien will not be dischargeable. If the lien is dischargeable, N.J.A. 2A:16-49.1 permits the debtor to cancel the lien in the event the creditor does not levy within one year of their receipt of notice of the bankruptcy. However, in the event the debtor fails to list the creditor on the bankruptcy petition, unless there is proof the creditor received notice of the bankruptcy, the debtor may not cancel the debt until one year after the creditor receives actual notice. If you are facing foreclosure, considering bankruptcy or an appeal in a bankruptcy matter, you should seek experienced legal counsel immediately in order to protect your rights. For more information on foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.