Legal Question in Bankruptcy in Arkansas

Re: bankruptcy/chapter 13

I think Attorney Hoenig meant to say "As long as you keep up with your PAYMENTS and get a discharge, no."

I disagree with that answer.

A purchase-money lender (such as a lender for a mortgage) can indeed enforce the lien that exists on the debtor's property by asking the court to lift the automatic stay.

If the debtor, AFTER the petition is filed, gets a new loan, then that creditor is not bound by the bankruptcy and can put liens on the debtor's property to its heart's delight.

There may be other circumstances under which a creditor can put a lien on the debtor's property; however, no lien can go on the property without the permission of the bankruptcy court while the case is active (i.e., while debtor is still making the Chapter 13 payments, before the case is discharged or dismissed). This is done by motion and the debtor has the opportunity to oppose the motion and try to convince the judge not to allow the lien.

I AM LICENSED TO PRACTICE LAW ONLY IN NEW YORK.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Re: bankruptcy/chapter 13 (clarification)

"If the debtor, AFTER the petition is filed, gets a new loan, then that creditor is not bound by the bankruptcy and can put liens on the debtor's property to its heart's delight."

Well, sort of. If Debtor gets a new loan after the bankruptcy petition is filed, the new lender cannot put liens on Debtor's property without permission of the bankruptcy court; however, it's a weird situation since the post-petition creditor is not bound by the bankruptcy petition and can enforce against the Debtor as if the petition had not been filed. Generally, bankruptcy courts do not allow new loans to debtors during the pendency of their cases.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Re: bankruptcy/chapter 13

As long as you keep making your chapter 13 cases and obtain a discharge, no. They cannot put a lien on your property the entire time you are in bankruptcy, and if you get a discharge the debt will be discharged and no lien may be obtained once that happens. If a case gets dismissed, then a creditor may get a lien after the dismissal is entered.