Is it legal for there to still be a lien after filing bankruptcy? 10 Answers as of March 30, 2011

I filed chapter 7 bankruptcy which was discharged in 2006. I am now trying to refinance my home. I found out Citibank has a lien on the home title, even though discharged to bankruptcy. How do I correct this? The lawyer said that it is a noncollectable judgment and it will "fall off" in 6 years. Per Citibank it will not. I need to know what to do to remove this lien.

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Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
A Motion with the bankruptcy could to "strip" the judgment lien should be filed.
Answer Applies to: Indiana
Replied: 3/30/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Your lawyer is incorrect. If citibank obtained its lien before you filed your bankruptcy case, and you did not remove the lien by filing a separate "Motion to Avoid Lien" in your bankruptcy, then the lien survived your bankruptcy discharge. The only way to remove the lien is to file a Motion to Reopen your bankruptcy case and, if granted, then file a Motion to Avoid the Lien. In order to be successful, the lien will need to have impaired an exemption to which you were entitled on the date your bankruptcy case was filed. This is a mathematical calculation that will require you to find out (i.e. prove) the value of your home and amount owed against it, including any senior judgment liens, on the date your bankruptcy case was filed. The bankruptcy code section is 522(f).
Answer Applies to: California
Replied: 3/29/2011
Uriarte & Wood, Attorneys at Law
Uriarte & Wood, Attorneys at Law | Robert G. Uriarte
You may have to re-open your case and file a motion to avoid the lien, if you meet certain requirements. See a bankruptcy lawyer.
Answer Applies to: California
Replied: 3/29/2011
The Shakoori Law Group
The Shakoori Law Group | Rachelle Shakoori
Yes it is legal. Many liens survive bankruptcy and if it the property was exempt, your attorney should have done lien avoidance motion to remove the lien.
Answer Applies to: California
Replied: 3/29/2011
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
Liens survive bankruptcy.
Answer Applies to: California
Replied: 3/29/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    Generally, liens ride through bankruptcy unaffected. In bankruptcy, affirmative steps must be taken to avoid liens, filing bankruptcy alone doesn't affect the status of the lien holder. What it sounds like happened was that Citibank sued you, got a judgment and recorded it in the county in which your property is located before you filed bankruptcy. Doing so transformed Citibank's claim from an unsecured claim to a secured claim. You could either try and cut a deal with Citibank and give them some money in consideration for them releasing the lien, or try to reopen your case and get an order from the bankruptcy court avoiding the lien. Call my office and we can talk more about it.
    Answer Applies to: California
    Replied: 3/29/2011
    Cohen & Kendziorra, P.A.
    Cohen & Kendziorra, P.A. | Robert S. Cohen
    You will need to file a Motion to Re-Open your bankruptcy case and then file a Motion to Avoid the lien to remove it per court order.
    Answer Applies to: Florida
    Replied: 3/29/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    I disagree that liens will "fall off", Creditors do not remove liens without action being taken. You will likely have to re-open your Bankruptcy and ask the Court for an order to remove the lien or demand Citi to remove the lien as discharged in Bankruptcy.
    Answer Applies to: New Hampshire
    Replied: 3/29/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    If the lien had been put on the property within 90 days of the bankruptcy being filed, it could be removed. Also if there was no or very low equity (very low depending on your state law) it could be removed. Otherwise, no.
    Answer Applies to: Virginia
    Replied: 3/29/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Liens are not eliminated by a mere discharge. You must file a specific motion to get an order from the Court saying that the judgment lien is eliminated. If the case was closed alrady, you can first file a motion to reopen the bankruptcy case for leave to file the motion to get rid of the judgment lien, which are usually readily granted under the right circumstances. Although seemingly simple, you really should consult a lawyer to handle this. Call us for a free initial consultation.
    Answer Applies to: California
    Replied: 3/29/2011
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