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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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I have a debt from a line of credit (I believe) now failed

Customer Question

I have a debt from a line of credit (I believe) for my now failed business with Wells Fargo opened in 2005. The agency they assigned the debt got a judgment against 2012. They say they have a lien against my former house that my ex wife now owns out right I deeded it to her in 2012.The amount is approx. 19,000. They have been allowing me to pay $45.00 per month ever since. That seems strange.. I just discovered they now know my physical address. My assets include $9,000 remaining 401k, 2004 BMW worth about $4,000 Office suit and two older computers. Not sure what those art worth..I plan to file for bankruptcy. What should I do at this point?Why do they allow me to make that small payment against such a large sum?Shall I tell them I about my plans for bankruptcey?Thank you,Rod,
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 1 year ago.

If they have a lien against property, that lien may still be vaild after bankruptcy, as bankruptcy eliminates debt, it doesn't remove liens. Depending on the timing of the judgment lien and when you deeded it to your ex, would determine if they have a valid lien or not. Payments allow statute of limitations to continue, which is why they may have allowed small payments. Talk to a local bankruptcy attorney to review the lien to determine if it is valid or not. If it is not, then your ex would need to quiet title to clear the lien, and then the debt would be discharged in bankruptcy. Let me know if you have any questions. thanks

Expert:  Terry L. replied 1 year ago.

do you have any questions? if not, please click accept to close the questions and rate the answer. thanks