QUESTION
How can I get the discharged lien removed?
Asked on Sep 01st, 2013 on Bankruptcy - Michigan
More details to this question:
It has been almost one year since we have received a discharge from bankruptcy chapter 7. I did not surrender the property but I had a secured loan discharged and they hold a lien on the house.
11 ANSWERS
The lien would remain after the bankruptcy if not properly removed by motion during the bankruptcy.
Answered on Sep 17th, 2013 at 3:09 AM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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Contact whoever put the lien on the property. You should provide a copy of the discharge order and the schedule listing that debt.
Answered on Sep 10th, 2013 at 2:36 PM
2 Awards
You can't discharge a secured lien.
Answered on Sep 10th, 2013 at 2:35 PM
If this is a lien on your homestead, it is invalid. Simply request the judgement lien holder to issue a release of lien. Or, show your title company that the debt was included in the bankruptcy. There is a Texas law that discharges those liens automatically.
Answered on Sep 10th, 2013 at 2:34 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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As a rule of thumb, voluntary liens are not removed. While your personal liability was discharged on the note against the home, the lien against the property remains until it is paid in full.
Answered on Sep 10th, 2013 at 2:34 PM
You don't remove a secured lien, often called a 2nd mortgage, equity loan, equity line or HELOC loan, through a Chapter 7 bankruptcy. You can remove a judgment lien in a Chapter 7. To get clear title to the property, you have to pay these 2nd mortgage loans. Often creditors will settle if you can pay a lump sum amount.
Answered on Sep 10th, 2013 at 2:34 PM
General Law Attorney serving Cherry Hill, NJ
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Mark S. Cherry, Attorney at Law, PC
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It is probable that you were personally discharged from the Note, but the mortgage remains against the property. A chapter 7 does not permit "Cram Downs" or "Strip Downs."
Answered on Sep 10th, 2013 at 2:34 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Liens are not generally discharged in a chapter 7 case.
Answered on Sep 10th, 2013 at 2:33 PM
Deborah F. Bowinski
The lien against property is separate and distinct from the discharged debt. If you had a lawyer for your bankruptcy you should contact him or her, although from your question it sounds as though you filed your bankruptcy case on your own. What sort of lien are you asking about? It could be a judgment lien, a tax lien, and HOA lien, or a voluntary lien for borrowed money. Each of those requires different treatment some can be released fairly painlessly and some will have to be paid if you wish to remain in the property and ultimately sell or refinance.
Answered on Sep 10th, 2013 at 2:33 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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The money you owed the Secured creditor has been discharged. However, their lien against your house remains intact. If you want to get rid of the lien you have to pay the discharged debt. If it is a Judgment lien you can record the Michigan Statute and various copies of your Bankruptcy papers which gets rid of the Judgment lien only.
Answered on Sep 10th, 2013 at 2:32 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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While your personal liability for a mortgage was discharged in the bankruptcy, the secured creditor still has a valid lien against the property. The underlying debt must be paid in the event that the property is refinanced or sold. That is the only way that the lien can be removed. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Furthermore, the answer is based on California law and their application to bankruptcy law in California. Additional information could change the context of the question and materially change the answer.
Answered on Sep 10th, 2013 at 2:32 PM