QUESTION
Will the third party lien expire after my bankruptcy has been discharged?
Asked on Oct 20th, 2015 on Bankruptcy - Ohio
More details to this question:
I filed Chapter 13 bankruptcy in 2008 to save my home from foreclosure. During the chapter plan, I was able to bring my mortgage payment current so the chapter plan was converted to a Chapter 7 and all debt was discharged. There was a third party lien on my home for an equity loan that my mortgage company had sold. I am not responsible for the debt personally due to the discharge.
7 ANSWERS
2 Awards
Your lien is not expunged. You will need to work with them to remove it.
Answered on Oct 30th, 2015 at 7:00 AM
No, it won't expire. That's the point of securing the loan against real property.
Answered on Oct 30th, 2015 at 7:00 AM
You cannot eliminate any mortgage lien in a Chapter 7 bankruptcy. Had you been eligible and lien stripped this 2nd mortgage in your Chapter 13, the lien would have been removed. The subsequent transfers of the HELOC rights to another party does not affect the validity of the lien. This is a question you should have raised before making decisions that you must now live with.
Answered on Oct 30th, 2015 at 7:00 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Unless removed by a court order, the lien travels through bankruptcy and remains on the property post discharge.
Answered on Oct 30th, 2015 at 6:59 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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The lien is still on the title and will have to be dealt with. It will come back on the sale or if there is sufficient equity in the house to support an action.
Answered on Oct 29th, 2015 at 7:06 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Your lawyer may have to file a Motion to determine that the lien is without value and the debt should be allowed as unsecured. I wonder why s/he did not do so already.
Answered on Oct 29th, 2015 at 7:06 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Liens are renewable forever. Other than Chapter 13, the only way to remove a lien is to pay it off.
Answered on Oct 29th, 2015 at 6:52 AM