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How can Old National bank put a lien on my house after I filed bankrucpty on them and the debit was discharged..

Muncie, IN |

The loan was a car loan that was my daughters in 1999, I am sorry to say I co-signed the loan......

I was told by Citi Mortgage that Old national sued 1/05 and a lien was put on my house then.... However I was never notified of this suit, was i to be notifed or what.... I am being foreclosed on home and I found out in april that of the lien on the house.... I tried talk to the law office about what Old national and the foreclosure and all i got was a smart mouth answer that were not helpful.....

Attorney Answers 4

  1. The short answer is that they should not be able to file a lien on a debt AFTER it was properly discharged. Did they sue you and obtain a judgment? Youll need to provide a lot more detail.

    We can be reached at 507.334.0155. Our web address is: www. Answers on Avvo are not to be considered a response to a specific legal issue in a specific jurisdiction - they are to be considered only general responses to hypothetical scenarios posed by the questioner. For specific legal advice, please consult with a licensed attorney in your jurisdiction. No information contained herein should be construed as a solicitation for business, an offer to perform legal services in any jurisdiction in which the attorneys of Corbin Law Office are not licensed, or the dissemination of legal advice. No creation of an attorney-client relationship should be assumed or implied. We are a debt relief agency. Corbin Law Office helps people file for bankruptcy relief under the bankruptcy code.

  2. When did you file for bankruptcy? Were they ever notified about it? Are they foreclosing or is someone else (this goes to damages)? If someone else, will there be any equity if the lien is invalid (again it is about damages)?

    You need to see a local consumer law attorney with the details.

    Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.

  3. In Indiana, a judgment automatically becomes a lien against real property that you own in the county of the court that rendered the judgment. Your bankruptcy attorney should have filed a motion to avoid the lien and have it stripped as part of your bankruptcy. If you had too much equity in the home at the time of your bankruptcy, it is possible that the lien was not eligible for avoidance.

    Advice on this forum is for informational purposes only and should never be mistaken as a substitute for legal advice. If you are in need of legal advice, you should consult local legal counsel.

  4. Your additional information says the lien was entered based on a judgment in 2005. I assume you filed bankruptcy after the judgment was entered.

    It is possible the lien could have been avoided in the bankruptcy. Of course you have to know about a debt/lawsuit to properly list is on your bankruptcy. Sounds like you were not aware you had been sued. Yes, they should have served you with a copy both at your home and by mail.

    That said, if you are in foreclosure and planning to walk away from the home, then it doesn't much matter that there are additional junior liens against the home. If you are trying to save the home from foreclosure, then the first mortgage is your primary concern. Once you can satisfy them, you can worry about doing something with the judgment lien later.

    Attorney Jay Perez is a Managing Attorney with Macey Bankruptcy Law, a national consumer bankruptcy law firm. His firm can be reached at 888-743-5787 or Attorney Perez manages offices in Indianapolis, Merrillville, South Bend, Elkhart, Fort Wayne, Anderson, and Lafayette Indiana. Attorney Perez is licensed to practice before the Supreme Court of Indiana, Federal District Court for the Northern District of Indiana, and the Federal District Court for the Southern District of Indiana. The private law firm of Macey Bankruptcy Law is a debt relief agency helping people to file for bankruptcy relief under the bankruptcy code.

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