What is a bankruptcy order of avoidance? 2 Answers as of September 16, 2010

My Chapter 7 bankruptcy case was discharged a year ago. I had one judgment included in the case that was discharged. I am now selling my house and have been informed there is a lien on it. I pulled my credit report 3 months ago and the lien was not listed. I was never notified. I have been told by the title company that I need to obtain an "order of avoidance." Will this be easy to obtain, how long will it take, and will it be expensive? I'm not making a dime on the property and will be bringing money to closing.

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The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
This is a common situation. Liens survive bankruptcy discharges unless they are avoided during the bankruptcy case. I take it from your question that you did not file a Motion to Avoid the Lien while your case was open. Whether or not you can get a lien avoidance now is a matter of the value of the property at the time your case was filed, the amount of all senior mortgages to the lien, and what exemptions, if any, that the lien "impaired". The process is to first file a Motion to Reopen your case and, if granted, then file the Motion to Avoid Lien. You need to consult with a bankruptcy attorney in your area who can fully review the facts and figures, crunch the numbers, and see if this is something you can do in your situation.
Answer Applies to: California
Replied: 9/16/2010
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
If there was a lien on the property, you have to file a motion to avoid the lien. A lien is a secured debt and is not discharged in the bankruptcy. So, here you would have to open the case, file a motion to avoid the lien, in order to get rid of the debt. You might spend $2500 - $3500 on an attorney. Depending on the amount of the debt, you might want to consider other options such as negotiating with your creditor to pay them some money if they will release the lien instead of reopening your case.
Answer Applies to: California
Replied: 9/16/2010
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