How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask socrateaser Your Own Question

socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 34851
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
10097515
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

My brother and I entered into a partnership llc in Tennessee

Resolved Question:

My brother and I entered into a partnership llc in Tennessee in 2003. Last fall, unfortunately, we had to file Chapter 7 Bankruptcy. The banks involved with the mortgages on the business properties we held, foreclosed, took back the properties, and sold them at auction. My question, one of the two banks involved attached a lien on my home to cover the deficiency after the property was auctioned off. The lien is such that if I die first, my wife gets the home free and clear. If she dies first, then they take ownership of the property to settle the debt. Tennessee has a homestead exemption of $25,000. I am married and age 64. No children. My bankrupty attorney said he had never heard of a bank doing this. I don't have the money or assets (other than our home) to pay off the $100,000+ deficiency. Do I have any recourse? Thanks. XXXXX
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 3 years ago.
Hello.

Please clarify:

  1. When you say that you filed bankruptcy, do you mean that the LLC filed bankruptcy or that both you and your brother each filed personal Chapter 7?
  2. Did you personally guarantee the mortgages on the properties held by the LLC?
  3. On what date (exactly) was the lien filed on your property?
  4. On what date (exactly) was your bankruptcy petition filed?

Thanks in advance.

Customer: replied 3 years ago.

1. Personal Chapter 7 Bankruptcy.

2. Bankruptcy attorney removed personal guarantee BEFORE filing Chapter 7 for each of us.

3. Sorry, I don't have the paperwork here in front of me, but I can get them for you later if needed. Chapter 7 for me was filed in December 2010. Lien was attached to the house in February 2011.

Expert:  socrateaser replied 3 years ago.
Thanks, that's all I need.

A lien filed against your property after you filed bankruptcy on a debt discharged in bankruptcy violates the bankruptcy injunction and you can demand that the lender release the lien immediately or file a contempt action and have the lender sanctioned with daily fines until the lien is released.

Not sure why your bankruptcy lawyer is not explaining this. Makes me suspicious of his/her motives. It could be:

1. The attorney screwed something up and if you figure out what that something is, you would have a malpractice suit against the attorney.
2. The attorney doesn't' think you can afford to pay for the court action to force the release of the lien (though the attorney would be entitled to attorney's fees paid by the lender), so he/she doesn't want to bring the motion to the court "on the come," as it were.

Contact the attorney and ask why you can't bring a contempt action to force the lender to release the lien. If the response seems cautious, then contact a legal malpractice lawyer.

For a referral, see this link.

Customer: replied 3 years ago.
Guess, I'm getting old! Must have had a brain fart. The personal Chapter 7 filing removed the personal guarantee. Chapter 7 was filed on August 28, 2010. February 2011 was the end of the 6 months claim by creditors. Lien was attached to our home on March 24, 2011. We've really felt in the dark about the proceedings. Our attorney said he has never seen a bankruptcy like ours, nor the actions the Bank's attorneys have stooped to to reclaim the deficiency judgment. We had our savings and retirement invested in our business, and we held on as long as we could until we had no other recourse than file Chapter 7. It seems the attorney was as surprised as we were about some of the actions taken during the bankruptcy. Right now my brother and I are living off social security benefits. We couldn't hire another lawyer right now even if we wanted to.
Expert:  socrateaser replied 3 years ago.
My answer is the same, re suing the creditor for contempt to force the release of the lien.

Malpractice lawyers work on contingency.

A bankruptcy lawyer can take a contempt action on contingency, because the lawyer will get paid by the creditor. But, the lawyer doesn't have to take the case.

You can just sit on your hands and wait until you can afford to sue the creditor to release the lien. There's no statute of limitations, though the court can deny your request if your delay prejudices the creditor. I don't know how your delay could cause the creditor prejudice, but were I in your shoes, I would want to try to get this matter resolved as soon as I could.

Hope this helps.

socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 34851
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.
 
 
 
Chat Now With A Bankruptcy Lawyer
socrateaser
socrateaser
1973 Satisfied Customers
Attorney and Real Estate Broker -- Retired (mostly)