QUESTION
How can you remove a small claim judgement lien from your home if bankruptcy was dismissed over a year ago, but you didn’t know there was a lien?
Asked on Oct 27th, 2015 on Bankruptcy - Colorado
More details to this question:
Can a motion to dismiss be filed with circuit court or was it the creditor’s duty to file a satisfaction with the court?
7 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Chapter 7 doesn't remove a judgment lien that was filed before the petition date.
Answered on Nov 06th, 2015 at 8:25 PM
The process to remove a lien from property eligible for a homestead exemption is called a Lien Avoidance and it must be filed in Bankruptcy Court. If the bankruptcy is closed, the bankruptcy case must first be reopened, which will require paying a filing fee. Since the noticing requirements to implement a lien avoidance are tricky, inexperienced attorneys often have problems getting this process through the courts. It helps to know the local rules backwards and forwards to resolve this matter promptly.
Answered on Nov 06th, 2015 at 8:25 PM
It depends on a few things but in basic principle you might have to reopen your case file a motion to remove the lien if it was placed on your homestead.
Answered on Nov 06th, 2015 at 4:40 AM
It is a rare creditor who would lift a finger voluntarily to remove a lien for you on a judgment discharged in bankruptcy. Usually what you have to do is re-open your bankruptcy case and file a motion to remove it. There are costs involved but it is often uncontested so actual litigation is unlikely.
Answered on Nov 06th, 2015 at 4:39 AM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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You have to move the Bankruptcy Court to re-open your case and to avoid the lien against the property. This entails a motion to re-open the bankruptcy case for purposes of filing to avoid the lien against the property. A motion and a proposed entry are filed, time for objections needs to run - the judge may, depending on the circumstances and jurisdiction, require an appearance by counsel or you, if you are pro se.
Answered on Nov 06th, 2015 at 4:39 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Was the BR dismissed or discharged? If dismissed, there's nothing you can likely accomplish. If discharged, your state laws, like those of Wisconsin, may provide a means to be rid of a judgment lien. Discuss this with your BR lawyer.
Answered on Nov 06th, 2015 at 4:38 AM
You have to reopen the Chapter 7 to eliminate the judgment lien. Any experienced BK lawyer can help you.
Answered on Nov 05th, 2015 at 5:25 PM