Lien Avoidance (Bankruptcy) Law and Legal Definition

Avoidance as used in bankruptcy laws refers to the ability to remove a lien. The Bankruptcy Code permits the debtor to avoid some kinds of liens that interfere with or impair an exemption claimed in the bankruptcy. For example, judgment liens attached to the debtor's home can be avoided if the total of the liens (mortgages, judgment liens and statutory liens) are greater than the value of the property in which the exemption is claimed. The underlying purpose of the avoidance provisions is equality of distribution among similarly situated parties