Legal Question in Real Estate Law in Illinois

lien on property

In 9/2003 a credit card company put a lien on our property. One month after that they took the debt back and sold it to another company. In Nov. 2003 we filed a Chapter 13 and the company it was sold to was filed and paid in full. Here is our problem nobody wants to release the lien, and we are in the middle of refinancing our home. We are being lied to. This is an unsecured debt so how can one they put a lien on then a month later sell the debt, get paid through the 13 and then won't release our lien? What can we do and can we sue them for this? We are desperate and this situation needs to be resolved ASAP. Please Help!


Asked on 3/26/08, 3:11 pm

2 Answers from Attorneys
George Zuganelis Zuganelis & Zuganelis, Attorneys at Law, P.C.

Re: lien on property

You will probably have to sue the lein holder. Good luck.

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Answered on 3/27/08, 1:37 pm
Thomas Moens Moens Law Offices, Chartered

Re: lien on property

If the credit card company obtained a judgment against you, the are entitled to file a memorandum of judgment in the recorder's office. This is how they put the lien against your real estate. If they were paid in full, they are obligated to release the lien. If they were only paid a portion of the debt through your Chapter 13, they do not have to release their lien. In such a case, you are not personally responsible fo the debt, but essentially your real estate is now responsible for the debt, if there is any remaining balance. Your bankruptcy attorney should have obtained a release of lien for you in the bankruptcy.

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Answered on 3/31/08, 2:02 pm


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