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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 17521
Experience:  B.A.; M.B.A.; J.D.
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I had a few judgment liens that attached to my home in NYS.

Customer Question

I had a few judgment liens that attached to my home in NYS. The property was repossessed in a tax lien foreclosure and the County took title by deed. It was my understanding pursuant to NYS Real Property Tax Law that all of the liens, taxes and mortgage were extinguished once the property was legally transferred.
I was able to file Chapter 12 timely and eventually the County gave me the property back through a Quit Claim Deed. According to my lawyer the Quit Claim Deed reflected only the County's interests because everything had been extinguished prior. This was not a nunc pro tunc settlement. There was actually no stipulations, it was mine free and clear.
However, the judgment liens that had not been avoided all reattached to my property while the Automatic Stay was in place. There were no motions filed to lift the stay to perfect their liens. I was advised to file an adversary proceeding to avoid these liens however I am wondering if I would first have to file an adversary proceeding to find out if they even legally exist during the bankruptcy.
Submitted: 8 months ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 8 months ago.

No. You need to proceed with the adversary proceeding to avoid the liens. What is relevant is that you have liens on your property now and you need these liens gone. You can also bring up the issue of the violation of the Automatic Stay with the placement of the liens during the time the Automatic Stay was in place without the permission of the Court.

Customer: replied 8 months ago.
But I need grounds to have them expunged and or avoided. This is not a chapter 7 but a chapter 12. I do not understand how prepetition judgment liens attached to a property I received title to post petition and while still under bankruptcy and the automatic stay was in place.
Expert:  Phillips Esq. replied 8 months ago.

That's why I stated that you would bring up the issue of the violation of the Automatic Stay in your proceeding to avoid the liens.

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