Does a lien on my home stay in force after my debt to that creditor is discharged in Chapter 7 bankruptcy?

Asked over 3 years ago - Dubuque, IA

I fel like I'm in a catch-22. I can't short-sell the house while the credit card's bank has a lien on it. I can't even sign the house over (deed in lieu) to avoid foreclosure while that lien is still on it. What can I do?

Attorney answers (3)

  1. Dorothy G Bunce


    Contributor Level 20
    Best Answer
    chosen by asker

    Answered . You can remove a judgment lien from a credit card debt in a Chapter 7. However, it is not an automatic process. A motion must be file to remove this lien under 11 USC section 522.

    Be sure your bankruptcy attorney is familiar with this process, as not every bankruptcy attorney has this specialized experienced & the timing & the noticing requirements are highly technical.

    Hope this perspective helps!

  2. Theodore Lyons Araujo


    Contributor Level 20

    Answered . You should have brought a 522f motion. Conatct your attorney and see if it is worth reopening the case to file the motion.

    Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and... more
  3. Leigh Todd Budgen


    Contributor Level 7

    Answered . The lien can be removed but the procedure varies widely from District to District. In our area we can do it without even a hearing sometimes but the paperwork has to very specifically drafted and recorded properly. Other Districts may require other work. This is definitely something worth seeking the advice of an attorney if you are serious. I agree, be sure to verify that they have done this type of motion before.

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