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Can a company file a lien on home after the debt was discharged in chapter 7 bankruptcy?

Orange Park, FL |

We filled for chapter 7 in 2009. We have a culligan water system on that filing that we still owed on. Well it was discharged in the bankruptcy. I just found out they filled a lien against my home for this, is this legal?? Can they do that?

Attorney Answers 3

Posted

If your debt was discharged prior to the lien being filed then the answer is "absolutely not!" The fixing of the lien is an attempt to collect the discharged debt and is a violation of the discharge injunction.

Please consult with your bankruptcy attorney as soon as possible.

This answer is for informational purposes only and should not be construed as legal advice or as establishing an attorney-client relationship. You should seek out a qualified, licensed attorney who maintains malpractice insurance in your state of residence.

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2 comments

Asker

Posted

Thank you for answering. I just saw date of lien is 4/28/09 and date of discharge is 4/29/10..... What now?

Guy Thomas Conti

Guy Thomas Conti

Posted

Please see my answer as a Comment under Mr. Fuller's answer.

Posted

If Culligan had notice of your bankruptcy filing, then they were discharged. They cannot file a lien on your house post-discharge for a debt that was incurred before the bankruptcy.

This is a violation of the discharge injunction. Contact the lawyer who filed your bankruptcy; and they can get the lien voided.

I am only licensed in WA State. This is only my general observation about the law and my experiences as a practicing attorney. This is not legal advice and should not be construed as legal advice. This does not create an attorney client relationship. If you wish to obtain legal advice or create an attorney-client relationship, then you should directly contact a lawyer licensed in your state who you believe possesses the knowledge and experience to assist you with your case.

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5 comments

Guy Thomas Conti

Guy Thomas Conti

Posted

The debt is discharged in a no-asset case even if there was no notice to the creditor. Of course, if they had no notice then Culligan would not be liable for damages for a discharge injunction violation.

Asker

Posted

Ok, I just found out they put lien on before the filing, then it was discharged... What now?

Asker

Posted

Date of lien is 4/28/09. Date of discharge is 4/29/10

Guy Thomas Conti

Guy Thomas Conti

Posted

Assuming they put the lien on prior to the filing of the case, you may be able to reopen your case and avoid the lien under 11 USC 522(f)(1)(A). You would need an attorney for this. Otherwise, you should have an attorney check your state law. In Michigan, a bankruptcy discharge will cancel a judgment lien.

Asker

Posted

Thank you for your time!!!!!! I called him!

Posted

You should definitely have a local bankruptcy attorney take a look to determine the nature of the lien involved and whether it attached to your property before or after the bankruptcy filing.

Many possibilities exist here depending on whether this was a consensual lien you granted the contractor of the water system, a mechanic's lien, or a judgment lien. An experienced attorney can review the county records, your contract with the installer/supplier that installed the system, and your bankruptcy petition to let you know whether anything can be done.

I am an attorney licensed exclusively in the State of Washington. All information provided should never be interpreted as legal advice with respect to any particular situation. Review all information obtained on this website with skepticism and contact an attorney in your state if you have questions about the subjects discussed.

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