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Hello. I have a few questions that I hope you guys can help me with. My husband has recently filed chapter 7 BK. He is not re-affirming our mortgage per our attorneys advice. BUT he has a judgement against him from Capital One in which our attorney says their is a judgement lien against the property. Our attorney wants an additional 350$ on top of the 1100$ we already paid him to remove the lien.

First question- how do I find out if there really is a lien against the property? It is not showing on his credit report and there is no recorded lien at our courthouse.

Second question-We were advised not to re-affirm so if in the future we cant make the house payment we can walk away with no fault. If thats the case why would I pay 350$ to have the lien removed?? We dont plan on selling and if we had to move then we could just walk away.

Third- I have read on several forums that in the event of a BK any liens are removed anyway. Is this true??

I thank you all for any advise or suggestions. I have asked our lawyer these questions but he seems to only be interested in me paying him more money. Oh and we are in Indiana if that makes a difference.




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How do I find out if there really is a lien against the property?


Go to the County Recorder???s office and the Secretary of State???s office. Search the records to see if a lien was filed. If so, get a copy.
???
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If thats the case why would I pay 350$ to have the lien removed?? We dont plan on selling and if we had to move then we could just walk away.


That is a very good question. One would remove the judgment lien under 11 USC 522(f) if the lien impaired an exemption. If you have no plans on capitalizing on the equity in your property (if there is any), then I suppose, having the lien on it does not matter. Just understand, if you ever do try to sell, you will have to deal with the lien if you choose not to utilize the benefits of 522(f).
???
Quote:
I have read on several forums that in the event of a BK any liens are removed anyway. Is this true??


Would love to get a link to such info. No, that is not true. In a Chapter 7 the debt is discharged. The lien, if valid under state law, passes through the bk unaffected unless you file the 522(f) motion (applies to judgment liens that impair the homestead exemption) or take some other step to have it released.

Des.

Sub: #1 posted on Sat, 03/10/2012 - 17:34

despritfreya despritfreya

(Posts: 171 | Credits: )

This was an extremely informative post mentioning all the appropriate sections of the code. It helped me clarify a few of my own doubts. Thanks Des :)

Sub: #2 posted on Mon, 03/12/2012 - 01:53

StevenDoyle StevenDoyle

(Posts: 199 | Credits: )

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