lien on property debt was discharged in bankruptcy

by PJ
(Lexington, KY USA)

We are trying to refinance house and redo HELOC. We are 8 years post Chapter 13 BK, filed(2007) and completed/discharged in 2012. A lien was placed on property less than a month before we filed in 2007 by a credit card company that won a judgement. This debt was discharged in bankruptcy. Any way to remove it? My inexperienced attorney did not check for the lien even though he was aware of the judgement filed and drug his feet for almost a month to file chapter 13 BK then did not claim any exemptions so lien could be avoided. He tells us we would lose if we tried to reopen the case and have the lien avoided or removed because at that time there was not enough equity in the home. Can I get the credit card company to remove this? Is the lien still valid/enforceable since the debt was discharged in BK? PLEASE help!! Thank you so much!!

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Jan 24, 2016
Disputing a lien
by: DebtCollectionAnswers.com

Public record information can be tricky because as long as it is recorded in the public record, it will usually be reported. However, the credit reporting agencies do have methods for suppressing information that should not be reported.

Have you tried simply disputing it with the credit reporting agencies? You could supply a copy of the bankruptcy discharge papers and explain that the debt was discharged in bankruptcy and that you believe the lien is erroneous. Who knows? It might work. However, we must caution you that if you need to close on this lien quickly a dispute could hold up your loan so discuss this with your loan officer first.

If disputing it with the credit reporting agencies doesn't work, you could try going directly to the lender to request a release of the lien. They may not care at this point. It's old and they aren't going to collect anyway. You could also get a second opinion about whether there is a legal procedure you could use to get it removed. We can't speak to that as we're not attorneys but it sounds like you're stuck due to an unenforceable lien...?

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