Legal Question in Bankruptcy in South Dakota

Property lein

Before my wife an I were married, She had to put her mom on her house. We now want to refinance. My mother in law and husband had to file Bankruptcy on their business. one of their debtors put lein on our house, The bankruptcy is finaly discharged. her attorney told her due to so new law or loophole, our lein was nat taken off. Are you familiar, and what do we do? If questions, please email


Asked on 1/19/06, 9:35 pm

1 Answer from Attorneys
Jim Craig Craig Law Office

Re: Property lein

You don't say what kind of lien it is; judgment lien, mechanic's lien etc.

In any event, if the mother did not live in the house at the time the lien was created, or at the time her bankruptcy discharge was entered, it was not homestead property and not capable of being claimed exempt. If she couldn't claim it exempt, she could not void a judgment lien against it as part of the bankruptcy case. If it was a mechanic's lien, (for improvements to the house) there are other possible remedies. If you're attempting to sell the house and can't because of the lien, your only practical remedy will be to attempt to negotiate a release of the lien for less than full dollar amount.

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Answered on 1/20/06, 9:37 am


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