Legal Question in Bankruptcy in California

Re: lien placed on home after filing bankruptcy

My recent experience (last fifteen years) The title compnaies have been ignoring these liens when the underlying debts were discharged in BK. there is no statute of limitations on this and when a debt is ten years old it should be removed from you credit report. So one of your options is to ignore it. Another would be to inquire of a title company what they would do if you sold the property now with the invalid liens on the property.

Re: lien placed on home after filing bankruptcy

No, what they did is not legal. Both actions they took violated the automatic stay and the continuing refusal to remove the lien is a violation of the post discharge injunction of 11 USC 524 (assuming you received a discharge). You should be able to get the lien removed by having an attorney write a letter to the creditor. However, if that doesn't work, you will have to file a motion to reopen your bankruptcy, and file a motion for violation of the automatic stay and violation of discharge. While the court may award you attorney's fees for bringing the motion, etc., you will have to pay for it in advance in all likelihood, and then you have to worry about collecting from the creditor if you prevail. Another way to go would be to argue to a title company or lender that the lien is void (which it is). There is case law that supports that contention even without a court order.