Expert: Terry Leeders - 4/2/2009

Question
I filed Chap bankruptcy in July 2004. I listed a discover credit card on my bankruptcy, which in turn was paid through the BK by the trustee. The BK was discharged with no questions in August 2007.
Now, in 2009 I am trying to refinance my house and this same judgement/lien is on my title(in the same amount filed). Before I filed BK, I was unemployed and was paying on this judgement as much as I could.
Does the company have to remove this lien due to the fact that it was paid during the BK without question?

Answer
If the debt was paid, you can request that the creditor file a satisfaction of debt and remove the lien.  If that doesn't work, then you may have to reopen the bankruptcy case, and file a motion to avoid the judgment lien.  This would take about 30 days.  If it was not paid in full, (if this was listed as an unsecured debt, lets say) then you need to pay off the balance, or pay it at closing, to clear the title.