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Most of my clients are very concerned about credit. They have gotten into debt as a result of credit and they can’t bear the thought of living without credit. Thus, one of the first questions that I get asked is, “can I keep one or two of my credit cards, I don’t have a very high balance on these?” The answer is generally no. Credit card providers are usually not interested in keeping a cardholder who has filed for bankruptcy. Most providers subscribe to a service that advises them of the recent bankruptcy filings.

The general answer is that bankruptcy filing, in and of itself, does not remove a valid lien. However, there are actions that can be taken before the court to remove a valid lien in some circumstances. For example, let’s say that a judgment creditor has filed a lien against a debtor’s home. That lien will remain despite the fact that the debt was technically discharged by the bankruptcy filing. This points out the difference between a debt and a lien. The debt is eliminated, however, the lien remains.

A group of Innkeepers USA Trust creditors joined others in protesting Five Mile Capital Partners and Lehman Brothers Holdings Inc.’s $374.4 million bid to buy the hotel owner. Read the Daily Bankruptcy Review story here.