Can they collect my from me if I sold my home? 17 Answers as of November 20, 2012

We filed personal bankruptcy 4 years ago. Now we are trying to refinance are home and found a lean on it from the bank. So I called them and asked them to please remove the lean since I didn't owe them any money. They said no that they were not going to that they were going to try to collect the money when I sold my home. That just doesn't seem right then what is bankruptcy for? Would you please help me a tell me what I need to do to get this lean of my home so we can refinance are home to get a lower interest.

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Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
Contrary to the many rumors on the internet, if you want to keep your home you have to pay for it. Bankruptcy in chapter 7 does not strip any liens the liens survive the bankruptcy. If you filed chapter 13 and the lien was totally unsecured you could have filed a motion to strip the lien and it could be removed from the property at the successful completion of your plan payments. Your attorney should have explained all this to you.
Answer Applies to: California
Replied: 2/9/2012
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
A judgment lien should always be listed in schedule D of the bankruptcy petition. Including the lien as a listed debt, of and by itself, does not remove the lien as security. Even though the personal liability of the debt is discharged, the lien can only be removed by a motion in the bankruptcy court. A motion to avoid lien under section 522f of the bankruptcy court should be filed during the bankruptcy case prior to closing the case. If you re-open the closed case to file the motion it will probably be denied. This is a serious issue and you should seek the advice of an attorney who is a certified specialist in bankruptcy law. Consult the State Bar for a listing of those attorneys in your area.
Answer Applies to: California
Replied: 2/8/2012
J.M. Cook, P.A. | J.M. Cook
A discharge in bankruptcy affects the debt but not the lien. So the lien is properly on the property and will remain until you pay it. During the bankruptcy, you can strip liens under certain circumstances but doesn't sound like you did that. Reason number 101 to hire an atty to help you through bankruptcy. We only make it look simple.
Answer Applies to: North Carolina
Replied: 2/6/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If the lien is from the mortgage company then it is valid lien that remains on the house. If the lien is from a creditor, then were they given notice in the bankruptcy and did your attorney file a motion to avoid the lien to remove it from the property. If that is the case, then you can either re open your bankruptcy case to remove it or go to state court to have it removed under NYS law.
Answer Applies to: New York
Replied: 2/6/2012
Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
You need to contact your attorney that filed the case. There are Lien that should have been removed.
Answer Applies to: Florida
Replied: 2/6/2012
    Law Offices of David H. Relkin
    Law Offices of David H. Relkin | David H. Relkin
    A bank lien on real estate is generally not discharged in a Bankruptcy proceeding. They file a proof of claim to protect their lien on the house and the Court generally allows it. There are some exceptions for instance if the mortgage is more than the value of the house, but unless the bank's lien is specifically discharged, it will follow you out of bankruptcy. You need to check the court records or consult with the attorney who handled your case.
    Answer Applies to: New York
    Replied: 2/6/2012
    The Barrister Firm
    The Barrister Firm | Christopher Benjamin
    Typically secured debts are not relieved through Chapter 7 Bankruptcy because the creditor still has the legal right to claim the secured collateral for satisfaction of the debt; moreover, if this property was your homestead, you probably held it as exempt and thus it was effectively outside the affects of bankruptcy and the creditor's rights were not discharged - thus allowing the lender to maintain its lien.
    Answer Applies to: Florida
    Replied: 2/6/2012
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It sounds like in filing pro se to save a few hundred dollars on a lawyer you made a very expensive mistake. One does not EVER (that means NEVER) file pro se. A lawyer would have filed a lien avoidance and removed the lien. The lien survived the bankruptcy because you goofed and didn't file the proper motion. In some jurisdictions, you may be able to pay a lawyer to reopen the case and fix it, and in others you simply are screwed.
    Answer Applies to: Georgia
    Replied: 2/3/2012
    Mazyar Hedayat and Associates
    Mazyar Hedayat and Associates | Mazyar Malek Hedayat
    You have misunderstood the nature of the discharge in bankruptcy. While your legal, or money, obligation to your mortgage company was extinguished in your case, the bank's in rem or lien interest iwas not. You must still pay the bank if you plan to exercise controls over the house as if you own it. By the way, if you owe no money to your mortgage company, what is there to refinance? The answer is: nothing. It sounds as if your Bankruptcy Attorney did not explain the process well enough.
    Answer Applies to: Illinois
    Replied: 2/3/2012
    Marc S. Stern
    Marc S. Stern | Marc S. Stern
    If the lien was not avoided in the bankruptcy, it passes through unaffected. The case needs to be reopened and the lien avoided in
    Answer Applies to: Washington
    Replied: 2/3/2012
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    The lien is probably an unavoided judicial lien that was not properly dealt with during your bankruptcy. If a creditor sues you (probably a credit card) and obtains a judgment they can record the judgment in the county you own real property and that judgment becomes what is called a perfected lien on your home. This all probably ocurred prior to your filing for bankruptcy. What should have been done while your chapter 7 was still open was to file a motion to avoid this lien with the bankruptcy court. This procedure would have removed this lien from your home. At this stage of the game your only option is to negotiate the lien or attempt to re-open your bankruptcy case so that the lien can be avoided.
    Answer Applies to: California
    Replied: 2/3/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    I am not sure how you filed the bankruptcy but a bankruptcy discharges unsecured debts. Secured debts are not discharged automatically due to a bankruptcy. You have to file a special motion in a bankruptcy case to remove liens against a home. If that was not done, then the lien survives. You can file a motion to reopen the case and remove the lien.
    Answer Applies to: California
    Replied: 2/3/2012
    Law offices of John P. Brooke | John Brooke
    When you file for bankruptcy it discharges your personal obligation on the mortgage but if you have a judgment against you it becomes a lien on your real property as well. At the time of the bankruptcy you would have needed to do a lien avoidance motion to remove the lien. I'm guessing this was not done at the time since the lien is still on your house. You would have to pay off the judgment with interest in order to refinance.
    Answer Applies to: New York
    Replied: 2/3/2012
    THOMAS G. GILL, P.A. | Thomas G Gill
    A lien survives the bankruptcy unless you file a motion to avoid lien when you filed your bankruptcy. You can try to reopen your case to file the motion but I recomend hiring counsel to do so and it may be too late.
    Answer Applies to: Maryland
    Replied: 2/3/2012
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Sounds like they had a judgment lien that was never avoided. It can still be done, go see a lawyer about reopening the case.
    Answer Applies to: California
    Replied: 2/3/2012
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    There is a difference between getting a discharge from personal liability, which is what a bankruptcy does, and removing the lien that creates a security interest. Liens are not removed in bankruptcy, so the bank can do exactly as it says it is going to do. It cannot come after you, personally, for any part of the debt but the bank's lien or mortgage survives the bankruptcy and remains on the house.
    Answer Applies to: Utah
    Replied: 11/20/2012
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