Bankruptcy Question Please Help

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My question is if it was in the bankruptcy discharge how can they later take that and tell her she know has to include it in the new loan? Is this legal, I dont feel it is if it is listed as discharged in the bankruptcy papers.

A bankruptcy discharge does not avoid any underlying security interests in the collateral given to secure a debt. So any security interests (liens) that were perfected prior to the bankruptcy were not eliminated by the BK discharge, and the creditor still has rights and title to property. In other words, the discharge means they cannot sue or make collection calls to demand payment, but their lien on the house is entirely valid. Or in other, other words, "you don't get a free house or car by filing bankruptcy."

And so their lien is valid and recognized until they are either paid off or act to realize on the collateral (ie foreclosure or repossession). Because their lien is valid, you cannot sell or transfer (or refinance) until the lien is released by the creditor.

There is more that I will not get into now, unless you want me to expand. For example, if there was little or no equity in the house then the BK attorney could have stripped/avoided the lien and then the creditor would be considered unsecured. But that is something that would have needed to be done before the discharge.