As a negotiating tool to reduce her mortgage balance, Mary should choose to avoid the lien in her Chapter 7 petition.

Question

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Under §522 of the Bankruptcy Code, a debtor cannot avoid a voluntary lien like a mortgage on their residence in a Chapter 7 bankruptcy. Voluntary liens, such as mortgages, are entered into by agreement and are not subject to avoidance in the same manner as some judicial liens or nonpossessory, nonpurchase-money security interests in household goods and personal effects.

As a Negotiating Tool to Reduce Her Mortgage Balance, Mary