Expert: Norma Duenas - California Bankruptcy Attorney - 1/23/2010

Question
I filed Ch 7 and was dismissed in 8/2001, I was a 1/3 owner of a property that with my sisters which I did not know I was on title with and we just sold the house, but now they say that there is a lien on the property because I didn't list this on my papers when I filed. The funds cant be releases until this is cleared up, what can we do? I didn't know that I was on title until just a few months ago.

Answer
I am assuming that by saying that your Chapter 7 case was dismissed that you mean that it was discharged (your liability was removed for the debts). First I am not clear if the lien is from a creditor who was discharged in the bankruptcy case and listed in the bankruptcy case. If the creditor was a dischargeable debt in bankruptcy for which you did not give them a voluntary lien on the property then there are several possible options.

First you need to determine when this judgment was entered and the lien on the property recorded. If the judgment was entered and recorded after the bankruptcy then there is a violation of the automatic stay. If they do not remove this lien then you can contact an attorney to possibly reopen the case and seek damages against the company.  

If on the other hand the judgment and recording was prior to the case being filed then you can seek to reopen the case and file a motion to avoid the lien on the property. You need to revise your schedules also indicating your ownership interest in the property and you should consult with attorney to determine if the ownership interest possesses any issues.

If you need further assistance you can contact me through http://www.socaladvocates.com