Expert: Mark J. Markus- California Bankruptcy Attorney - 10/16/2006

Question
There is actually two judgements, october 13, 2005 and Jan 3, 2005. He filed in Oct 2004. What happens the house still belongs to both his ex wife and him. Discovery was in his chapter 7 and was a creditor that was included in the discharge.

-------------------------

Followup To

Question -
My son filed chapter 7 which was discharged April 20, 2005.
He and his ex wife are selling a house which had a balloon note that matured Sept 2006.
During the title check it showed Discovery card has a judgement placed Jan. 2005 before he went to court and before the discharge date.
Will the discharge papers be enough to get rid of that judgement so the title can be cleared for sale?

Answer -
If the lien was recorded more than 90 days prior to the FILING of your son's chapter 7 case (it has nothing to do with the discharge or court dates) then it remains after the discharge, UNLESS your son filed--and the court granted--a Motion to Avoid the Lien.    He can still re-open his BK case to do such a motion, assuming the lien is avoidable (which depends on the value of the property on the date his BK was filed, and other factors).

Answer
If he owed on the debts before he filed his bankruptcy case, and they obtained a judgment AFTER he filed the bankruptcy case, then the debt(s) were discharged and the creditor is in contempt of court for obtaining the judgment and for (if it's the case) recording the judgment creating a lien.  Depending on the laws of the jurisdiction where his case was filed, the judgment is VOID and a mere presentation to the title company of the relevant dates should suffice to have them clear title around that lien.  If they are unwilling, then if Discover Card does not IMMEDIATELY remove the lien upon request, your son should march into bankruptcy court with an emergency motion for contempt against Discover Card.