Expert: Terry Leeders - 5/24/2008

Question
Hi, I live in Tn & filed BK in '04. All the debt was from a previous divorce in '00 that I was co signer on. I remarried in Feb '03 and we bought a house in oct "02. We have now sold our house & are supposed to close next week. Here is the problem, I just happen to talk to the title company & they told me a creditor( that i filed on) had attatched a lien to the house & that it would have to be cleared up before we could close. The civil judgement from that creditor was included in the bk....i never got notice of this attatchemnt & even since owning the home had a 2nd mortgage...what can I do at this pint to stay on track with closing? I am going to meet with the creditor on Tuesday to see if they will remove it but I don't know exactly what to say or if I should even mention that my house has sold....Help me please, or I am afraid I will have to consult a divorce attorney again(LOL). Please email me asap. Thank you.

Answer
This will depend on when the creditor put the lien on your home.  If it was done after your case, then by law, it couldn't have attached, and your real estate attorney can work to clear that off.  If it was done prior, you may have to reopen your bankruptcy case and bring a motion to avoid lien, as the bankruptcy can only discharge the debt, if it is secured by the equity in the home, you would need to bring a supplemental motion to strip off the lien if it impairs your equity exemption.  This is a specific calculation, so speak with your bankruptcy attorney to help you.