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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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In 2010 I filed for Bankruptcy with a discharge in May 2011.

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In 2010 I filed for Bankruptcy with a discharge in May 2011. The mortgage(I continue to pay to keep the house) on my primary residence was discharged along with a second lien I discontinued paying(house underwater with both liens). Is there any way to avoid monetarily settling with the second lien holder to have the second lien released from the County record? Can I do since lien was discharged? If not, what percent of the lien or fee should I settle on? Thank you, Roger

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

The bankruptcy discharges your requirement to pay the mortgage, either first or second, neither can collect on the debt.

Terry L. :

The liens still remain on your home to secure the debt, and all that the creditor can do to collect is foreclose if they choose.

Terry L. :

You would have to work with the lender to settle the account if they are willing to do so, to remove the lien.

Terry L. :

It doesn't come off with bankruptcy, so you would either have to sell, short sell, or negotiate a settlement for them to release their lien.

Terry L. :

The creditor will review your situation and values to determine if they wish to settle the account.

Terry L. :

Remember, any settlement can be taxable as income to you, so talk to your tax advisor as well.

Terry L. :

Thanks for your question, let me know if you have any others.

Terry L. :

Terry

Customer:

Thank you for your reply. You confirmed other input I have received. My lawyer indicated he "may" be able to have the lien released with no monetary settlement to the lender, so I will try and handle on my own to avoid a $1500 fee to my lawyer. Roger

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