Mr. & Mrs. Debtor (names confidential) v. Chicago Title Insurance Co.
Mar 27, 2008OUTCOME: Title company removed unrecorded judgment lien from title report.
A client I had represented in a Chapter 7 bankruptcy case contacted me to report that she and her husband were refinancing their home and that there was an unrecorded judgment on their title report. Th ... e underlying debt was discharged in their bankruptcy case but the title company refused to clear the judgment from the title report. The judgment was entered (but was never recorded) right around the time the bankruptcy case was filed. I convinced a title company to clear the exception from the title report (without having to obtain a satisfaction of judgment from the judgment creditor), arguing that a refusal to clear the judgment was a violation of the discharge injunction. My clients were able to refinance and were very appreciative of the outcome.
