Legal Question in Administrative Law in California

I would assume that it probably does, but first you must consider if the lien should exist. A lien for rent owed can only be impossed if a judgment has been entered. Why would your personal home be liable for your business debts?

Mr. Shers raises a good question. I would have to guess that you guaranteed the rent personally, or that the business was a sole proprietorship or partnership, which is pretty much the same thing as a personal guarantee. Anyway, double-check as to whether you really are personally liable and that the lien, presumably a judgment lien, is valid.

By the way, a timely declared homestead might have preserved some of your equity.

As to the effect of a Chapter 7 bankruptcy, the underlying indebtedness will be discharged in the bankruptcy unless for some reason it falls into one of the narrow categories of non-dischargeable debts. One of the more likely ones in a situation like this would be if the underlying debt was a judgment based on your having committed a fraud against someone, such as the commercial landlord.

In a Ch. 7, the debtor typically loses a substantial portion of his assets, which are marshaled and sold to pay something-on-the-dollar of the debts. So, while it gets rid of the lien, it may also get rid of your house. See a bankruptcy specialist for particulars including whether your debt is eligible for discharge and what assets are exempt from sale to satisfy creditors.