Can they still hold her / us liable for it and can we still sell the property? 5 Answers as of August 23, 2017

My wife filed chapter 7 back in 2003. We are about to sell our other property. My wife had taken out a loan on it back in 1999 in her maiden name but after that she had put it her new married last name. According to the papers, their attorney sent to our attorney it is still open and it is against the property. She has not heard anything about this until now and it has been 18 years since she took out the loan, and 14 years since she filed bankruptcy and it was included in it. What can we do to clear this up?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Liens against the property are not discharged in Chapter 7. You need to see a lawyer who is real estate savy. If you are in California you may have a remedy as I believe there is a 10 year statute.
Answer Applies to: California
Replied: 8/23/2017
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
You can notify the other attorney that her mortgage debt was discharged in the BR-and prove it by sending him or her a copy of the schedules of debts she filed, and a copy of her Discharge.
Answer Applies to: Wisconsin
Replied: 8/21/2017
Law Office of Kimberly Fives | Kimberly Fives
I'm sorry your question is not very clear. Assuming you're talking about your primary residence at the time your wife filed for bankruptcy if it was included in the chapter 7 she would have been able to exempt a certain amount of equity in the home at the time as long as her payments were current or she cured any default. I suggest you consult with a bankruptcy attorney.
Answer Applies to: California
Replied: 8/21/2017
A Fresh Start
A Fresh Start | Dorothy G Bunce
If your wife took out a loan on IT meaning she gave the lender a mortgage, the mortgage is a lien on the property that is not affected by a chapter 7 bankruptcy. While your wife does not owe the mortgage debt herself, the house does owe this debt. Changing her name, changing title to the property does not remove a mortgage. If this debt has not been paid in many years, it has likely grown with interest and late charges to an astronomical debt. Perhaps this debt can be settled for less than what is owed on the property, or perhaps not. Sounds like someone made an incorrect assumption.
Answer Applies to: Nevada
Replied: 8/19/2017
Ronald K. Nims LLC | Ronald K. Nims
Your wife is not personally liable on the loan but the loan is probably still a lien on the property. And since no payments have been made for 14 years, the amount of the loan is likely more than the value of the property.
Answer Applies to: Ohio
Replied: 8/19/2017
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