There are many pitfalls to avoid when filing for bankruptcy that consumers need to be aware of and understand . To help avoid these problems you should hire only a competent attorney specializing in bankruptcy law. Because one small error or misstep may cause your case to be dismiss (instead of discharged).
Did you know your credit score takes a major hit when there are judgments and liens? In fact, it stays on your credit for seven years! This alone should be a reason to avoid judgment and liens. Consider too that because of the ding on your credit you may also pay a higher interest rate when borrowing for mortgages, car loans/leases, etc.
If you have two mortgages (on the same property) and you're home is financially under water (you owe more than what your home is worth) filing for bankruptcy may help to eliminate (or "strip away") your second mortgage. Here's something else to think about. Did you know you could file for bankruptcy and still lose your home? Most people don't. Just another reason why you need a competent bankruptcy attorney.
Bankruptcy is not the answer to all financial problems. There are certain judgments and liens where bankruptcy may not help. This may include IRS liens, NYS tax warrants, mechanic liens and domestic support judgments. Most taxing authorities will allow you to work out a payment plan. It may be worth a shot to try and work out a deal as opposed to doing nothing and having a tax lien/warrant.
Should you ever be in the position where you need the guidance of a bankruptcy attorney be certain to hire a competent one who's expertise is bankruptcy. This is not the time to hire a "jack of all trades" attorney. Like foreclosure defense (consumer law), bankruptcy law is a very specific area of law.