Can I have judgment liens that was prior to a BK removed 3 years after discharge in TN ?

Asked over 1 year ago - New Market, TN

I did not reaffirm my 1st or 2nd mortgage when we were granted a BK discharge . 3 years later the bank has still not foreclosed and we are talking with them about moving back into the house and modifying the loan ; however I have several judgments from a past business that total about $ 150 , 000 that were included in the BK . The home has been vacant for over 3 years and has been vandalized . At this point probably worth $ 120 , 000 , my 1st is $ 240 , 000 , my 2nd is $ 80 , 0000 . I am trying to negotiate with the 1st and 2nd to come to a settlement amount to release their liens , but need to know if I can get the judgment liens removed this late after the BK discharge ? Or should I try to settle for pennies on the $ ? I'll have to put about $ 20S in the home just to live there .

Attorney answers (3)

  1. Dorothy G Bunce

    Pro

    Contributor Level 20

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    Answered . It is a pretty simple thing to reopen a bankruptcy to remove the judgment liens if you know what you are doing, but the process isn't cheap. Your plan makes no real economic sense based on the information you provided and I have to wonder why you want to pour good money after bad right now. Hope this perspective helps!

  2. Carl H Starrett II

    Contributor Level 16

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    Answered . I recommend that you consult a local bankruptcy attorney on this, but I have seen this done before. Even though the case is closed, you can file a motion to reopen and see judgment liens. A local attorney will be able to examine the facts of your file to determine if actually qualify for removal of the liens.

    First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy.... more
  3. Todd Joseph Mannis

    Contributor Level 10

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    Answered . You quite possibly can, but it will not be a piece of cake. Reopening the case shouldn't be that hard, but you're going to have to establish the value of the property at the time of the filing, which was some time ago. That can be done, but it puts another wrinkle in this. Depending upon the amount, you might be better off settling with them for pennies on the dollar, but even then the attorney will probably be able to do better than you could on your own, so you really want to consult with a bankruptcy attorney on this one.

    Todd Mannis, Esq.
    Calabasas, California

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