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BKAnswerMan, Attorney
Category: Bankruptcy Law
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Experience:  Experienced Bankruptcy Attorney that has represented over 1,000 clients in consumer bankruptcy proceedings.
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How can a hospital lien on the property be release in Nevada?

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How can a hospital lien on the property be release in Nevada? Bankcruptcy Chapter 7 list hospital as one of the creditor and the lien is part of the document the filing of the bankcrupcty. The bankcruptcy was discharged with no issues. The property is now being short sale and mortgage company need a clear title. We contacted our lawyer who handled our bankcruptcy but can't help.
If it is a non-consensual judgment lien, then you may be able to reopen the case and file a motion to avoid lien under 11 USC 522(f).
The hurdle you will have is timing. If you are able to find an attorney that will file the motion to reopen the case as well as a motion to avoid lien it will probably take at around 30 days to complete this process.
Customer: replied 5 years ago.
You mentioned "TO AVOID THE LIEN", the lien has been issued and recorded prior to the filing of bankruptcy Cahpert 7 and was part of the document that was submitted in the court.
Can you further explain these phrase.
CLAIMS asserted: Not applicable, claims scheduled to be discharged without payment (without deducting the value of collateral or debts excepted from discharge):
A formal motion needs to be filed with the court after a motion to reopen the case is issued. The motion needs to rely on the statute that I referred. You should have another attorney look at the lien and the local bankruptcy rules because there may be additional hoops you have to jump through based on the particular local rules in your district. 11 USC 522(f) provides that "the debtor may avoid the fixing of a lien on an interest in property to the extent that such lien impairs an exemption to which the debtor would have been entitled". Although you have no equity and may have not filed an exemption on the property, in my experience this has never posed a problem avoiding a lien under this section of the bankruptcy code. I believe I have answered your questions. If you have additional questions, I would be happy to discuss this with you further under a new question heading.
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Customer: replied 5 years ago.
can you explain further ' avoiding a lien under this section of the

bankruptcy code.
There is a hospital Lien on the property that need to be released by the Hospital so that the mortgage company can have a clear title on the property and process the short sale.
I wil look for a local attorney that can handle this kind of situation and request for their assistance to file with the court a motion to reopen the case, you think the hospital will then be able to released the Lien on the property.

I think there is a strong liklihood that you can obtain an order from the court that will satisfy your title company. You will want to know what language your title company needs for the order to contain. There are some exceptions to 522(f) that could apply. Consent to the lien is the primary exception. Avoidance motions are brought by negative notice, meaning if there is no response to the motion within the time frame to respond then the motion will be granted. You really need to have an attorney look at the nature of the lien, though. If it is a lien for unpaid medical bills, then I think you have a strong argument. Relevant factors include 1) the nature of the lien, i.e...did you consent to the lien when you incurred the debt, and 2) whether the hospital is a private or public entity.
Customer: replied 5 years ago.
Yes, I am going to have an attorney to handle the case. Any idea on the approximate cost will be helpful. I am un employed and rely on SS Benefit.
The Lien is for unpaid medical bill (charges) owed to the Hospital and was covered under schedule D - Creditors holding secured Claims filed with the bankcruptcy court.
Now I understand the term 'Avoiding a Lien" or eliminating a a Lien". Bankruptcy 7 - Discharged our personal obligation, but DO NOT DISCHARGED Lien and really a need to request the court to open a separate petition for the process of Lien Avoidance.
Relevant factor - nature of the Lien - i.e...
1) did you consent to the lien when you incurred the debt - can you elaborate please.
2) It is a University Medical Hospital
It should run somewhere in the $1,000 range.
Customer: replied 5 years ago.
Sorry, I was not able to get back. Anyway thank you for the info.
Per our bankruptcy attorney - Lien avoidance does not apply in this case since the property was not claimed as an exemption on the BK7. This resolve the issue to the release of Hospital Lien..therefore, the only time it will be wipe out is thru foreclosure of the said property. The Lien stay on the property and can not have a clear title for the mortgage company to process the short sale unless more offer is made to cover the lien amount. Your advises are very helpful on my querry.

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