QUESTION
If I were to file bankruptcy immediately, would that release the liens?
Asked on Nov 30th, 2012 on Bankruptcy - New York
More details to this question:
I recently sold my home and during the title search, 3 judgment liens were found on the home.
10 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Need specifics. Secured transactions are a complex issue. See a bankruptcy attorney.
Answered on Apr 11th, 2013 at 3:23 PM
Daniel James Wilson
I am assuming that when you say you "sold" your home, you contracted to sell it but it has not closed yet. Judgment liens must be satisfied before your closing can take place. You may have to pay them from proceeds of the sale. A BK can deal with judgment liens, but not immediately. Filing BK would stop closing. Take at least six months for BK process. See an attorney.
Answered on Dec 02nd, 2012 at 10:32 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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If the house is your homestead, then judgment liens do not attach to your homestead, BUT title companies are NOT willing to issue title insurance unless you do something to have a court declare that the liens don't attach to your homestead. Bankruptcy is one option, but you need to take further steps in Bankruptcy Court for a declaration that the liens don't attach to your homestead. Consult with an experienced bankruptcy attorney.
Answered on Dec 02nd, 2012 at 10:23 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Perhaps, but your question is a little confusing as I am not sure if you still own the home, are wanting to keep it, if the liens are against you and the property, etc. Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Dec 02nd, 2012 at 9:49 PM
Business Litigation Attorney serving Orange, CA
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Law Offices of Frank Granato
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You may be able to discharge the debts, but the liens may remain on title. You need a consultation with an attorney who can look at your case.
Answered on Dec 02nd, 2012 at 9:40 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Generally not only if it impairs an exemption.
Answered on Dec 02nd, 2012 at 7:38 PM
Filing bankruptcy won't release liens on property that you have already sold. Although it is possible to remove liens affecting property that is protected by a homestead through bankruptcy, once you sell, you no longer can claim the homestead protection.
Answered on Dec 02nd, 2012 at 7:30 PM
Construction Litigation Attorney serving Mission Viejo, CA
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Law Office of Christian F. Paul
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The liens against the property at the time of filing remain and "ride through" bankruptcy unless and until the debtor moves to have the liens "scraped off." So the answer is no, the liens will not be released by filing for bankruptcy protection, nor at the time of discharge, for that matter, without something more on your part. You can get a more complete response by taking all relevant papers to a local bankruptcy attorney. Many offer a free half-hour consultation. Take your tax returns, proof of earnings, all outstanding bills, a credit report, your deed and vehicle registration papers, the judgments against you, and a list of monthly expenses so that the attorney can evaluate your case.
Answered on Dec 02nd, 2012 at 7:29 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No. You would need a sale motion.
Answered on Dec 02nd, 2012 at 7:28 PM
No you have to bring a motion to get that removed.
Answered on Dec 02nd, 2012 at 7:24 PM