Legal Question in Bankruptcy in California

What happens to a lien discovered AFTER Ch. 7 discharge?

My husband just received notice that there is a lien against a property he purchased as many as 15-20 years ago. He knew nothing about it until one week ago. He had filed a Chapter 7 bankruptcy in December 92 which discharged all debts listed at that time in 4/93. Had he known at that time that this lien existed, he would have listed it among his creditors; however, he knew nothing about it. Can his 12/92 filing list of creditors be amended? If not, any other suggestions as to how to include this debt in that Ch. 7?


Asked on 10/25/97, 2:30 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

lien in Chapter 7

Except in unusual circumstances, liens pass through bankruptcy unaffected. While the personal obligation to pay is discharged, the lien creditor can still pursue its rights in the property.

If the lien attached to the property prior to its purchase by your husband, it should be covered by your owners title insurance policy if you bought one.

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Answered on 11/03/97, 3:25 am


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