Expert: Terry Leeders - 6/30/2008

Question
My husband filed bankruptcy in 2003, and it was discharged in 2004.  An unsecured creditor, which was business related not personal, had obtained a judgement against him personally; hence, the bankruptcy. The company was listed as a creditor and was sent all required notifications, etc. Now, 4 years later, their lien still appears against my home and was renewed by them last year.  My husband's attorney retired and is no longer available.  The house is in my name and my husband's name, but I had absolutely nothing to do with this creditor.  Now I am trying to refinance my house and can not because of this lien.  Wasn't the lien suppose to go away with the bankruptcy?  We paid the trustee $50,000.00, but we had no control over the amount he paid this unsecured creditor.  Thanks for any help you can offer.

Answer
If the creditor put the lien on before bankruptcy, then the lien will remain unless you brought a motion to avoid lien.  While the bankruptcy eliminated the debt, it didn't remove the lien.  Talk with your attorney about bringing a motion to re-open the case to bring the motion to avoid.  A judgment lien can be avoided if it impairs your allowed exemption.  Each state exemption is different, so your attorney can do the equity analysis for you to see.