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Bankruptcy Law/Los Angeles Bankruptcy Attorney Advice on Lien On House

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Question
I am trying to purchase a home on a short sale. The owner has agreed to work with me exclusively. I am trying to do most of this myself. The first hurdle is how to remove 2 liens that are recorded on the property. The home has been vacant for more than 2 years and there have been no payments made on the home loan. The home owner filed for Bankruptcy a couple of years ago. The 2 liens I am referring to were discharged in the bankruptcy proceedings. How do I get these 2 liens removed from the Title report?

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Leon Bayer
Leon Bayer  
Dear Gary,

I see this sort of thing alot. An experienced bankruptcy attorney will know exactly what to do.

The bankruptcy court will usually permit the debtor to reopen a closed case so he or she can seek relief that could have been sought (but perhaps was overlooked) during the bankruptcy. Avoiding judgment liens is a good example of what can be requested if the court agrees to reopen a case.

A situation like this requires a two step process, First, a motion has to be made to reopen the case. Second, if the court reopens the case, a motion has to be made to avoid the judgment liens. To avoid the liens, the debtor must establish that there was no equity in the property to cover any part of the liens at the time that the bankruptcy was filed, and that the debt is entitled to claim an "exemption" on the property.

In your situation, I would not be surprised if the debtor failed to claim an exemption on the property. A claim of exemption is usually necessary as an element of the process to avoid a judgment lien in bankruptcy. If there are problems with the debtor's original bankruptcy paperwork, it may be possible to get them cleaned up by filing amended Bankruptcy Schedules as soon as the case is reopened. Again, an experienced bankruptcy attorney will know exactly what to do.

Sometimes we hear from people that filed bankruptcy in the past–or we get a call from their real estate brokers–that have to deal with liens on their home that shouldn’t be there after a bankruptcy case. These “surprise liens” can screw up a loan refinance or a sale of the home and they might need to be dealt with by going back into the old bankruptcy case.

For example, during a bankruptcy case a debtor might not have been aware of a judgment lien and only learned about the lien years later when he or she is trying to refinance or sell a home. In that case the debtor might want to reopen the closed case and then file a motion seeking to avoid the lien.

We’ve even seen situations where creditors filed liens on property after a bankruptcy case; and these liens interfere with an escrow closing. This could happen if a creditor claims they did not receive notice of the bankruptcy filing; or if the creditor simply ignored the bankruptcy to engage in improper debt collection activity. In these situations, it may not always be necessary to re-open a closed bankruptcy case, but intervention by an experienced bankruptcy lawyer could make the difference in getting that refinance or sale closed promptly.

This isn’t the first time I’ve written on this topic and it probably won’t be the last since real estate title problems and past bankruptcy cases often overlap.

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Bayer, Wishman & Leotta are Los Angeles Bankruptcy Attorneys. Each lawyer in the firm is a Los Angeles Bankruptcy lawyer and is a Certified Specialist in Bankruptcy Law by the State Bar of California. The firm has successfully represented individuals and small business clients in Los Angeles bankruptcy proceedings for over 32 years.

Los Angeles Bankruptcy Attorney Leon Bayer and his partner, Los Angeles Bankruptcy Attorney Jeff Wishman, are  Bankruptcy experts who bring experience, skill and creativity to the highly complex area of bankruptcy law. And not just a little experience. Between the two Los Angeles Bankruptcy Attorney partners, they have over 65 years of experience handling bankruptcy cases in Los Angeles, Long Beach, Woodland Hills, North Hollywood, Riverside, Santa Ana, and the entire Los Angeles basin.

As a long-standing expert, Leon is frequently called upon by the media, the California Bar and other associations to give opinions, provide insight and help educate new attorneys on bankruptcy and its changing laws. This column is one more way that Leon Bayer shares his knowlege and expertise in the confusing world of bankruptcy law with the public and provides resources of free bankruptcy help for individuals struggling with debt problems.

If you or other readers want to keep up with my Los Angeles Bankruptcy Attorney blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/,  my professional web site at http://www.debt-relief-bankruptcy.com, and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/.  

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Los Angeles Bankruptcy Lawyer Leon D. Bayer

Expertise

Leon Bayer is a bankruptcy attorney in Los Angeles, California. Leon has successfully represented clients in Los Angeles bankruptcy cases for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. Leon Bayer es un abogado de bancarrota en Los Angeles, California. León ha representado exitosamente a clientes en casos de bancarrota de Los Ángeles por más de 30 años. Él es llamado con frecuencia en los medios de comunicación, la barra de California y otras asociaciones para proporcionar información y ayudar a educar a los abogados en materia de quiebra. Leon's Los Angeles bankruptcy law firm is Bayer, Wishman & Leotta, founded in 1989 and has successfully represented individuals and commercial clients in bankruptcy proceedings for over 22 years. Leon Bayer and his partner, Jeff Wishman, are Certified Bankruptcy Specialists who bring experience, skill and creativity to the highly complex area of bankruptcy law. And not just a little experience. Between the two partners, they have over 60 years of experience as bankruptcy attorneys representing consumer debtors in Los Angeles, Long Beach, Woodland Hills, North Hollywood and the entire Los Angeles basin. As a long-standing expert, Leon is frequently called upon by the media, the California Bar and other associations to give opinions, provide insight and help educate new attorneys on bankruptcy and its changing laws. This blog is one more way that Leon Bayer and Jeff Wishman share their experience with the public and provide resources for individuals struggling with debt problems. You can learn more about Los Angeles Bankruptcy Attorney Leon D. Bayer at Hyperlink Code

Experience

Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years. To learn more about Los Angeles Bankruptcy Attorney Leon D. Bayer, go to http://en.wikipedia.org/wiki/Leon_D._Bayer Leon Bayer es un abogado de bancarrota en Los Angeles, California. León ha representado exitosamente a clientes en casos de bancarrota de Los Ángeles por más de 30 años. Él es llamado con frecuencia en los medios de comunicación, la barra de California y otras asociaciones para proporcionar información y ayudar a educar a los abogados en materia de quiebra. Los Angeles bufete de abogados de bancarrota de León es Bayer, Wishman y Leotta, fundada en 1989 y ha representado con éxito a clientes individuales y comerciales en proceso de quiebra desde hace más de 22 años. Leon Bayer y su socio, Jeff Wishman, son Especialistas de Concursos certificados que aportan experiencia, la habilidad y la creatividad a la zona de alta complejidad de la ley de bancarrota. Between the two partners, they have over 60 years of experience as bankruptcy attorneys representing consumer debtors in Los Angeles, Long Beach, Woodland Hills, North Hollywood and the entire Los Angeles basin. Entre los dos socios, que tienen más de 60 años de experiencia como abogados de bancarrota de los deudores que representan a los consumidores en Los Angeles, Long Beach, Woodland Hills, North Hollywood y toda la cuenca de Los Angeles. Como experto de larga data, Leon se llama con frecuencia a los medios de comunicación, la barra de California y otras asociaciones para dar opiniones, proporcionar información y ayudar a educar a los nuevos abogados de la bancarrota y las leyes cambian. Este blog es una manera más que Leon Bayer y Jeff Wishman compartir sus experiencias con el público y proporcionar recursos para las personas que luchan con problemas de deuda.

Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association. Presidente, 1995-1996-Los Angeles Forum bancarrota; Miembro - Comité de la Asociación de Abogados del Condado de Los Angeles en la Ley de Bancarrota Comercial, 1988. Law Advisory
Opinión de la Comisión-Personal & Small Derecho Concursal del Colegio de Abogados del Estado de California, 1996-2000

MR. BAYER DICE: Los grandes bancos y de los companys de tarjetas de crédito han estado trabajando horas extras durante muchos años para vulnerar el derecho constitucional que del pueblo estadounidense para que pueda reclamar la protección de bancarrota. En 2005, el lobby bancario logró convencer al Congreso y al Presidente que hacen las leyes y proceedures más complicado, hopeing que va a obstaculizar las personas que sí que la declaración de quiebra. Tuvieron éxito en la obtención de estos nuevos y complejos proceedures legales por engrasar el sistema legislativo con cientos de millones de dólares en contribuciones de campaña "." La buena noticia para el pueblo estadounidense es que mientras que las nuevas leyes han hecho los proceedures innecesariamente complejas hasta el punto donde la gente sin experiencia no puede dejar de tropezar con el laberinto de las nuevas normas y reglamentos, el proceso es aún factible, especialmente con un abogado que está bien entrenado y con experiencia en esta especialidad.

Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.
A free on line bankruptcy books for consumers at www.bestbankruptcybook.com

Education/Credentials
B.A., J.D.

Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.

Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases throughout my career. Probablemente he manejado algo del orden de alrededor de 15.000 casos de quiebra en toda mi carrera.

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