My client filed BK 7 because of credit card liens. Now it is discharged. And we got a short sale approval from Chase. The creditors will not release the lien still because they said it was filed before the bankruptcy. I will appreciate your suggestions.

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I had this problem with one of my short sales. The seller filed BK (which had already been discharged), but did not file a " Motion to Avoid Judgement Lien". You need to find out if this was filed with the BK. I was told that if this is not filed, the borrower has no personal obligation to pay any discharged debt, however, judgement liens which have attached to real property can remain good for at least 5 years". We had 2 that were discharged, but judgement liens had attached to the property. We negotiated a settlement with them, and they released the liens. The "buyer" paid the settlement through escrow at closing. He really wanted this property. Clear title could not be given until this issue was resolved. I am in California, so it may differ from state to state.

 

Thank you, Laura. Very helpful. I hope the lawyer and collector for American Express will be cooperative.
Good answer Laura.  I'm also in California and I have not dealt with this Motion to Avoid Judgement Lien.  THanks for the heads up..
Folks have to remember that they need their BK attorneys to strip the real property liens if the creditors attached real property in conjunction with their debt. If not, your just going to have to pay them to remove the liens later. Happened to me many times.

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