Did you give them the lien rights before the bankruptcy case was filed?
If so, they can "include" the accrued interest on the loan balance. While the bankruptcy may have discharged your obligation to pay them any money, it doesn't remove their lien rights against the collateral. The balance on those lien rights will continue to accrue according to the terms of the instruments that granted them the interest.
Sorry I couldn't offer better news - but hope this helps point you in the right direction
An involuntary lien can be avoided in Chapter 7 under 11 USC 522(f). A voluntary junior debt/lien can be stripped in a Chapter 13 when the stars are aligned. Did your BK atty explain this to you?
I recommend that you get a *paid* consultation with a bankruptcy lawyer. Explain all this to them and find out your options.
There is too much confusion here to parse out to be able to help you. You filed bk or your business? Lien before or after bk? How did they make you sign anything? Whole life or term? i.e. what happens if you just cancel your insurance?
Were any liens stripped? Why not do a subsequent 13 to strip now? Maybe can strip if you reopen case?
All this and more need to be asked, answered, and analyzed. Get an attorney.
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