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DCrane Law
DCrane Law, Attorney
Category: Bankruptcy Law
Satisfied Customers: 25285
Experience:  Experience in this area derives from assisting corporate clients in complex restructurings.
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I went chapter7 in 2003 and was dischared in 2004. Discover

Customer Question

I went chapter7 in 2003 and was dischared in 2004. Discover card had put a lean on my home for what i owed them and got a judgment for it . Now 5 years later i find out they never took the lean off of my home and the county still has it out standing when it should have been satified due to the discharge. I am tring to refinance my home and can't because of the lean.How can I get it taken care of and do I have any recorse againist discover.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  DCrane Law replied 7 years ago.
to be clear, was the debt listed in the bankruptcy?
Customer: replied 7 years ago.
Yes i had 3 discover accounts that were listed and they were discharged.
Expert:  DCrane Law replied 7 years ago.
To get the lien removed, you will need to file a petition with the bankruptcy court.
Customer: replied 7 years ago.
How long will it take for them to remove it going that route
Expert:  DCrane Law replied 7 years ago.
It would take approximately 3 months. Also, I might add, per Jay1968, you would have to pay the reopen fee to the BK Court which is $260 along with the motion to reopen, then then file a motion to avoid the lien (11 USC 522(f)), and there is a 20 day objection period. Assuming no objection is filed (creditors pretty much never object), you will get the order removing the lien after the 20 day period runs.
DCrane Law, Attorney
Category: Bankruptcy Law
Satisfied Customers: 25285
Experience: Experience in this area derives from assisting corporate clients in complex restructurings.
DCrane Law and other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.
I thought federal law supersedes state and county law when dealing with bankruptcy and liens and why wasn't that taken off when the bankruptcy was discharged? Who do i go to complain that it wasn't done.I feel like i have been done a mis justice here. Now I can't refinace my home and all the work I have done to qualify for my loan is all wasted because of all this.
Expert:  JoeLawyer replied 7 years ago.
Hello doc:

Federal law does supercede state law, but liens still do not go away in bankruptcy unless a special motion is filed during the case (called a Motion to Avoid Judicial Lien) to remove them (see 11 USC 522(f)).

So, either you didn't know about the lien during your Chapter 13 (in which case I assume you would have filed the motion), or the lien attached after the case was over.

The lien should not have attached after the case was filed since this is a violation of 11 U.S.C. 362, but sometimes they do.

So, if Discover did inappropriately attach the lien after your bankruptcy, you can tell them they had better remove it since it was a violation of the Bankruptcy Code.

If they won't remove it, or if it was on there from before your bankruptcy, then you will probably have to reopen your case and file the motion to get rid of it.

Sorry, wish I had better news. But I guess at least the fact that you can get rid of it, even if you have to jump through some hoops to do it, is good news...

Good luck.


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