Mortgage lien and bankruptcy

What is the name of your state?What is the name of your state?NY
Hello, i hope someone can answer this with more than "You need a lawyer!"
I filed chapter 7 bankruptcy approx. 2 years ago and there was a judgment against me from a credit card company. They filed a lien on my mortgage. I went thru the bankruptcy and listed that judgement with my other (all unsecured) debts. The bankruptcy went thru no problems according to my attorney and i thought all was well until i tried to refinance my home and the lien showed up. Now my lawyer wants me to pay $155 more to file a motion to reopen the bankruptcy case and try to have the lien removed, no guarantees etc.... Can anyone tell me if this is proper? I thought if it was listed on a bankruptcy it (the debt) was gone.Thanks in advance!!

[JETX]

Originally Posted by cajzmere

Can anyone tell me if this is proper? I thought if it was listed on a bankruptcy it (the debt) was gone.

That is not the way that I would handle it, but the $155 is a VERY fair price if it will remove the lien.

Rather than attack it from a discharge direction, I would simply file a 'Motion to Vacate' in the original court that rendered the judgment, as it was discharged by the bankruptcy. Once the original court sets the judgment aside, simply make a demand on th lienholder to release the lien, since with the set aside of the judgment, the judgment lien is no longer valid.

[HomeGuru]

Originally Posted by cajzmere

What is the name of your state?What is the name of your state?NY
Hello, i hope someone can answer this with more than "You need a lawyer!"
I filed chapter 7 bankruptcy approx. 2 years ago and there was a judgment against me from a credit card company. They filed a lien on my mortgage. I went thru the bankruptcy and listed that judgement with my other (all unsecured) debts. The bankruptcy went thru no problems according to my attorney and i thought all was well until i tried to refinance my home and the lien showed up. Now my lawyer wants me to pay $155 more to file a motion to reopen the bankruptcy case and try to have the lien removed, no guarantees etc.... Can anyone tell me if this is proper? I thought if it was listed on a bankruptcy it (the debt) was gone.Thanks in advance!!

**A: the creditor did not file a lien on your mortgage. Here is what most likely happened; the credit card company demanded payment, you refused to pay so they tool you to court and won a judgement. Then they went to court again and filed a judgement lien against the title of your real property.
In BK, a judgement can be discharged but not a judgement lien on real property except under certain circumstances.

[JETX]

Originally Posted by HomeGuru

In BK, a judgement can be discharged but not a judgement lien on real property except under certain circumstances.

With all due respect, I disagree. A judgment that was discharged in bankruptcy can be set aside by filing a proper motion and order with the court. Once the judgment is set aside, the judgment debtor can file a demand with the lienholder that since the judgment no longer is valid, to file a release of lien.
Simply, without the underlying claim (judgment), the lien is invalid.

Thank you both for your help, that DID help. I have the original papers stating that that debt had been discharged and am now making them (credit card co.) remove the lien. They don't want to but they have no choice. BTW i love this forum and bulletin board!!

[JETX]

Originally Posted by cajzmere

Thank you both for your help, that DID help.

You're welcome.

I have the original papers stating that that debt had been discharged and am now making them (credit card co.) remove the lien. They don't want to but they have no choice.

Don't forget... you have to get the judgment set aside BEFORE they are required to release the lien. Simply, if the judgment remains (even if the OBLIGATION is discharged in court), the judgment lien can remain!!

[gcbel]

cazhmere, we have the same situation, am trying to refinance but the title company wants me to pay off a lien placed by a creditor. the amount owed was discharged on my bk filing last may 2001. how did you remove the lien? how do i file a "motion to vacate"? do i need to call the bk court and get a form from them? i live in california, and the bk court is at stanislaus county..

[JETX]

Originally Posted by gcbel

cazhmere, we have the same situation

Don't 'hijack' someone elses thread. It is both rude (by diverting the focus from them) and confusing (when you think a post is to you when it is directed to the OP). Someone will try to answer when you delete your post here and start your own.