QUESTION
How can you get a property lien removed after discharge from bankruptcy?
Asked on Oct 30th, 2012 on Bankruptcy - Colorado
More details to this question:
Just got discharged from bankruptcy chapter 7, had a first lien and second line by my mortgage lenders. I surrendered the property; second lien holder is still there, how can I get it removed since it was discharged in BK even though it was secured debt?
10 ANSWERS
Bankruptcy Law Business Attorney serving Asheville, NC
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Pitts, Hay & Hugenschmidt, PA
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If you surrendered the property, the second lien holder can collect against the property, but that is all.
Answered on Jun 13th, 2013 at 1:51 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Just got discharged from bankruptcy chapter 7.
Answered on Jun 13th, 2013 at 1:44 AM
If the lien is attached to the property, then there is no way to remove it although you are no longer legally liable for the debt. If you need a lien removed you need to make a motion to do so during a bankruptcy case. If you need the lien removed you should contact an attorney about how to proceed.
Answered on Nov 02nd, 2012 at 1:29 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Why are you worrying about this if you surrendered the property? Your obligation to pay the debt was discharged. You cannot keep the property without paying for it, but since you surrendered it obviously you do not want to keep it. If there is a homeowner's association you need to check with the good real estate or bankruptcy attorney in your state to determine your obligations.
Answered on Oct 31st, 2012 at 5:44 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You surrendered the property, the debts have been discharged, you have no obligation to the second mortgage lien holder. Why?
Answered on Oct 31st, 2012 at 5:43 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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When you receive a discharge in Chapter 7, your personal liability for your debts, including the loans on your home are extinguished. However, there is no effect on the liens on the property. Properly secured liens remain on the property until such time as the property is sold or foreclosed upon.
Answered on Oct 31st, 2012 at 5:43 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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A discharge of the debts in bankruptcy does not relieve or change the fact property is liened. I would suspect the second mortgage holder is hoping there will be some potential recovery after the first lien is paid off.
Answered on Oct 31st, 2012 at 5:42 PM
Bankruptcy Chapter 7 Attorney serving Fort Collins, CO
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The Salas Law Firm LLC
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I am confused on why you would do such a thing. If you surrendered the property, why do you care if there is a lien? You need to file a Motion to Reopen and then File a Motion to Avoid the Lien. The court cost will be about $300.00.
Answered on Oct 31st, 2012 at 5:42 PM
If the lien is a voluntary lien, such as a 2nd mortgage, line of credit or Equity loan, you cannot remove it in a Chapter 7. Those types of loans can only be eliminated by a Chapter 13 where you lien strip. If this lien is something that occurred as a result of a legal right, such as from a HOA, utility, or mechanics lien, these types of liens cannot be removed in either a Chapter 7 or Chapter 13. If this is a judicial lien, you can file a motion to avoid the lien. You may have to reopen your bankruptcy to bring this motion. The process to do this is quite complicated & you should retain an experienced attorney to represent you in this matter.
Answered on Oct 31st, 2012 at 5:41 PM
Daniel James Wilson
You surrendered the property. Why would you care about the 2nd mortgage?
Answered on Oct 31st, 2012 at 5:40 PM