Will stripped liens be taken off my record after a Chapter 7? 17 Answers as of July 30, 2011

If a lien was stripped in a Chapter 13 proceeding and survived conversion to a Chapter 7, will it automatically be released off public records or would you have to take additional procedures to release it?

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Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
Strip is usually not effective until chapter 13 discharge, so it seems you are out of luck, the lien remains.
Answer Applies to: Michigan
Replied: 7/22/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
If by lien "strip" you mean a lien avoidance, that only occurs once you get a court order avoiding the lien which you can record with the county recorder. Usually this only occurs at the end of the case after you have completed all required plan payments and are ready for discharge. If your case was converted, I doubt there ever was a lien avoidance. Technically, a lien "strip" is merely a valuation of a lien into secured and unsecured portions for purposes of payment of claim in a Chapter 13 or Chapter 11 case, but removal of the lienas indicated abovecan only occur by a court order that gets recorded with the country recorder.
Answer Applies to: California
Replied: 7/18/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Real estate liens are subject to being disclosed on the public record. Stripping a lien in chapter 13 does not alter the public record as it stands.
Answer Applies to: California
Replied: 7/18/2011
Law Office of Lynnmarie A. Johnson
Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
Generally a lien cannot be stripped in Ch 7 even when converted from a Ch 13, any lien strip I have seen requires that you successfully complete the Ch 13.
Answer Applies to: Michigan
Replied: 7/18/2011
Law Offices of Joseph A. Mannis
Law Offices of Joseph A. Mannis | Todd Mannis
Lien strip is conditional upon completion of the Chapter 13. If converted to a Chapter 7, the lien is not stripped. Otherwise, everyone would file Chapter 13s, strip the lien and immediately convert to Chapter 7.
Answer Applies to: California
Replied: 7/18/2011
    Ray Fisher Law Offices
    Ray Fisher Law Offices | Ray Fisher
    This is a question for your bankruptcy lawyer. If a lien was stripped in 13 then it was stripped and cannot survive in conversion to chapter 7. What is done is done. However you may need to get a certified copy of the court order stripping the lien and file that in the deed records to clear up the title.
    Answer Applies to: Texas
    Replied: 7/18/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    If the lien was stripped, then a copy of the order stripping the lien should be recorded with the county recorder's office.
    Answer Applies to: Indiana
    Replied: 7/18/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    If you stripped a lien in a Chapter 13 filing and then converted the case to a Chapter 7 before receiving your Chapter 13 discharge, the liens are NOT stripped. They are revived when you convert. They only get removed from the property if you successfully complete your Chapter 13 case.
    Answer Applies to: Colorado
    Replied: 7/18/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It sounds like you screwed up and did this without a lawyer. Your mistake cannot be fixed. The lien strip is only valid if you stayed in a chapter 13. By converting to a 7, the lien remains. Had you used a lawyer you would have known that and might have made a different decision about losing that benefit from a 13.
    Answer Applies to: Georgia
    Replied: 7/18/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If you do not obtain a Chapter 13 discharge (or at least complete the plan payments in some jurisdictions) the lien will not be stripped. If it was voided then the bank can have the court reinstate the lien. I am assuming you are referring to a voluntary lien such as a second deed of trust or mortgage and not an involuntary lien such as a judgment lien that can also be stripped in Chapter 7.
    Answer Applies to: California
    Replied: 7/18/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    No. Not automatically removed.
    Answer Applies to: Virginia
    Replied: 7/18/2011
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    If you get an order to strip a lien in a chapter 13, the actual release of the lien will not occur until/unless you complete the chapter 13 plan. Therefore, if you convert to a 7 then the lien still exists.
    Answer Applies to: Arizona
    Replied: 7/16/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Lien strips do not "survive" in a conversion to Chapter 7. They require completion of the Chapter 13 plan to be effective, and liens remain after a Chapter 7 discharge.
    Answer Applies to: California
    Replied: 7/16/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    the lien strip did NOT survive the conversion to Chapter 7. You have to complete your chapter 13 plan to have the lien strip completed.
    Answer Applies to: California
    Replied: 7/16/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    Not as long as you own the house
    Answer Applies to: California
    Replied: 7/16/2011
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