Legal Question in Bankruptcy in Illinois

Secured creditor failed to file claim and bankruptcy was discharged

Filed a personal Chapter 7 after some bad investments by my spouse. We reafirmed many secured debts. One secured creditor, (home equity line of credit) failed to file a claim, (they were notified of the bankruptcy and were listed as a secured creditor) the bankruptcy was discharged and a year later they contacted us for payment (they did not send bills after bankruptcy was filed). They do have a lien on our home. Is the lien still valid? Do they have to remove it? If not, are we responsible for interest that has accumulated since discharge? Thanks for any assistance you can provide.


Asked on 10/24/99, 12:42 pm

1 Answer from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

Re: Secured creditor failed to file claim and bankruptcy was discharged

You need an office appointment with a competent bankruptcy attorney. The Discharge in Bankruptcy operates to discharge you PERSONNALLY, but operates in rem against your real property. So yes, they still have a secured position and they can forclose against the real property if they wish.

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Answered on 10/26/99, 12:32 pm


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