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Maverick, Lawyer
Category: Real Estate Law
Satisfied Customers: 6422
Experience:  20 years professional experience
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I own a home/land with my siblings. One of the siblings has

Customer Question

I own a home/land with my siblings. One of the siblings has a lien against the property. We now have obtained the order of Discharge of Bankruptcy. What is my next step to clear the lien on this property
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Wisconsin
JA: Has anything been filed or reported?
Customer: All I have is the order of discharge.
JA: Anything else you want the lawyer to know before I connect you?
Customer: I don't think so
Submitted: 1 month ago.
Category: Real Estate Law
Expert:  Maverick replied 1 month ago.

Welcome to Just Answer! My name is***** give me a few minutes to review your inquiry. Thank you for your patience.

Expert:  Maverick replied 1 month ago.

Was the lien placed on the property before or after you filed bankruptcy on that siblings debt?

Customer: replied 1 month ago.
the lien was placed on the property at the time my brother filed bankruptcy
Expert:  Maverick replied 1 month ago.

Judgment liens that exist before filing bankruptcy survive the discharge issued by the bankruptcy court. The rule is that bankruptcy extinguishes debts but not liens. So if there home is worth 100k but the debt owed to your brother is 120k, the most he could collect on this debt is the 100k via a lien foreclosure on the property. The other 20k would be discharged and uncollectable after the BK.

I know this is not the answer you wanted to hear, but I am assuming that you are paying for a professional and honest answer.

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Customer: replied 1 month ago.
The lien was placed against anything he owned. So he owned one fourth of the property. Now that we have the order of discharge of bankruptcy are you saying that the lien still exists? If so, how do we get the lien removed?
Expert:  Maverick replied 1 month ago.

Yes, any liens placed against his property interests BEFORE bankruptcy was filed are still enforceable; even if the full amount of the debt incurred is discharged. This is a very common misunderstanding amongst bankruptcy filers. The way to get the lien removed is to negotiate a payoff with the lien holder in writing in exchange for his/her filing a release of lien in the deed records. If not, the lien holder may at some point try to foreclose on the property.