Chapter 11 - Chapter 11 Liens are claims of creditors or...

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Chapter 11 Liens are claims of creditors or taxing authorities against the real and personal property of a debtor. A lien is a type of encumbrance. Liens are either general, covering all real and personal property of a debtor-owner, or specific, covering only identified property. Liens are also either voluntary, arising from an action of the debtor, or involuntary, created by statute (statuatory) or based on the concept of fairness (equitable). With the exception of real estate tax liens and mechanics’ liens, the priority of liens is generall determined by the order in which they are placed in the public record of the county in which the property is located. Real estate taxes are levied annually by local taxing authorities and are generally given priority over other liens. Payments are required before stated dates, after which penalties accrue. An owner may lose title to property for nonpayment of taxes because such tac-deliquent property can be sold at a tax sale. Some states allow a time period during which a defaulted owner can redeem his or her
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