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How to remove lien in your home after chapter 7

Denver, CO |

When i tried to refinance my house. I found out my house has lien by one of my creditor. And that credit card was included/filed in that bankrupcty and it discharged 1 year ago. Can i still refinance my house. FYI my house was never late in payment. PLS. HELP

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Attorney answers 3


This was something that could have done during the bankruptcy--having the bankruptcy judge avoid the judgment lien. What you now can do is to have the BKC case reopened and then bring your Motion to Avoid Judgment Lien. You will have to pay $260 as a re-open fee to the Clerk and whatever an attorney would charge.

In the alternative, CO law may allow you a means of having the judgment lien dissolved. In my jurisdiction, a debtor must wait a minimum of 1 year after the discharge to do so, but CO law may require more time. Consult with an attorney in your area.

I hope this response was helpful.

This response is not intended to create an attorney client relationship, and if the issue does not involve the laws of the State of Florida, this response shall not be deemed to be legal advise but only a general response to a general question. This response shall not create an obligation upon the attorney to respond to further inquiry.


How a lien is disposed of in a bankruptcy depends on the type of lien involved. My answer assumes that you are asking about a judicial lien recorded against your real estate after a creditor has obtained a judgment against you in a lawsuit. The answer also assumes that the lien was recorded with the county clerk and recorder before the bankruptcy case was filed. If the lien was recorded after the bankruptcy petition, then the judicial lien was recorded in violation of either the bankruptcy stay or the discharge order, depending on when the lien was recorded.

You should be able to refinance if you can get an order from the bankruptcy court avoiding the judgment lien. To the extent that a judicial lien impairs a debtor's homestead, the lien can be avoided under the Bankruptcy Code. Lien avoidance must be done by filing a motion to avoid the lien in the bankruptcy court. Notice of the motion to avoid the lien and an opportunity for a hearing must be provided to the judgment creditor.

If the bankruptcy case has been closed, the case must be reopened before the lien avoidance action can be pursued. If the court enters an order avoiding all or part of the lien, a certified copy of the order can be recorded with the county clerk and recorder, in effect, to wipe out the judgment lien and to make the prospective lender's title insurer happy enough to sign off on the refinance.

Among other things, a bankruptcy attorney can help a debtor evaluate the following with respect to the lien and its removal: (1) To what extent the lien is avoidable. (2) What court papers and procedure are required to obtain an order. (3) If the case has been closed, exactly what court fees and procedure are required to reopen the case. (4) Under certain circumstances, whether there has been a violation of the bankruptcy stay or discharge order by the recording of a post petition lien.


If the lien was placed on the house before you filed, then the lien still exists (unless you were able to have it removed because it was involuntary and impaired an exemption). The personal liability was discharged not the lien.

[This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship.]