Chpt 7 and lien on home

[Introuble2008]

First, let me say -- I've tried searching here and can't find the answer. I'm hoping you can help.
We filed for chpt 13 last summer. We had told our attorney that DHs 401K would run out (we're retired) in June 2009. He said to return and they'd change it to a Chpt. 7. Between the time we started the Chpt 13 paperwork and actually being final, a CU put a lien on our home. We want to keep our home. What happens to that lien when we go Chpt 7????? We want to keep the house, but we KNOW we won't be able to make the payments on a lien on top of our regular payments.

thanks

[justbroke]

I think it would depend on what type of lien the Credit Union placed on the home. If it's a consensual lien (like you have a secured line of credit with the CU which encumbers your home), then I don't see you getting out of that.

If it's a non-consensual lien which was caused by a default on a loan, and they received a judgment and then encumbered your home with a lien, I believe you can get that lien avoided in your Chapter 7.

Unless you have a bunch of equity in your home which exceeds any homestead exemption, I think you can get that lien avoided because it impairs your exemption.

But that's my initial opinion on this.