Legal Question in Bankruptcy in Illinois

Bank trying to acquire equipment after a Discharge

My husband & I were discharged of our Chapter 7 Bankruptcy but one bank that had a ''kitchen sink'' lien on all our equipment is still trying to acquire that equipment that was left to us by the trustee. Can the bank do that? and if so for how long of a term? Just equipment he can prove we owed prior to the Bankruptcy or anything we own in the future?


Asked on 3/07/08, 11:18 am

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Bank trying to acquire equipment after a Discharge

Yes, the bank has a security interest, while your liability was discharged, the lien didn't go away against the equipment unless you successfully avoided the lien in bankruptcy. The bank cannot attach a lien on property acquired after the bankruptcy was filed due to the fact the debt was discharged, but you may want to see an attorney about possibly avoiding the lien.

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Answered on 3/21/08, 2:56 am


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