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Bankruptcy Law/Judgement discharged in BK but not released

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Expert: - 12/22/2011


Question
HELLO,
I am trying to buy a house.
I did BK in 2008 (or some around that time)
anyway,  I had a debt with CHASE and they register a JUDGMENT.
Everything (the debt and the judgment)  was included in the BK,  and the  BK was discharged with no problem

Now, in my credit report shows the Judgment and it says included in BK but it doesn't say "release".

Now that I am trying to buy a house, the lender  is requesting the release of that lien...   I Contacted Chase but they said they can not do anything because the debt was included in BK.
So,  my question is.... can you help me gettig the judgment release? how long will it take and how much will it cost.

By the way, I need to do it right away....

thanks

Answer
If they recorded a judgment against your property before your bankruptcy case was filed, then you needed to file a motion to avoid the lien in your bankruptcy case in order to remove the lien (your attorney should have explained this to you).  Otherwise, it remains against the property (as you have found out).  In order to be able to remove the lien, it must impair an exemption to which you were entitled on the date your bankruptcy case was filed.  This requires a numerical calculation to be done using the value of the property on the date your case was filed, and using the values of the mortgages and any other liens against the property at that time, and doing calculations which include the exemption you (hopefully) took on Schedule "C" to your bankruptcy papers.

You may wish to read my article on this topic at http://bklaw.com/bankruptcy-blog/2009/10/removing-judgment-liens-in-bankruptcy/

If your case was filed in the Greater Los Angeles area, I might be able to help you.  Just contact me and I can get more necessary information from you to determine the ability to remove the lien and cost for doing so.  At this time it will require reopening your bankruptcy case in any event, and it will take at least 30 days or so to get it all accomplished.

Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
bankruptcy blog: http://bklaw.com/bankruptcy-blog/
Follow Me on Twitter:  @bklawr  

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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