Legal Question in Bankruptcy in Maine
Ex Parte Lien not discharged?
My husband filed for Chapter 7 bankruptcy 5 or so years ago. Prior to the filing, and the court date on the filing, a debtor filed an Ex Parte Lien against him. This lien has been located during a lien search on a home refinancing.
Is there any reason why this lien would not have been discharged with all other debts at the time?
1 Answer from Attorneys
Re: Ex Parte Lien not discharged?
I assume by your question that it was a "creditor" that instituted a lawsuit and lien and not a "debtor".
In any event, the Bankruptcy discharge affects "in personum" or personal liability. For example, if the creditor in question was a credit card company, the Bankruptcy presumably discharged the obligation to pay for the debt. However, the Bankruptcy does not automatically affect "in rem" or claims secured by property, to the extent of the equity only. For example if your home had significant equity and a credit card company obtained a lien, you may not be required to pay for the debt yourself after bankruptcy, but the sale or refinance of the property may need to pay it off to remove the lien.
The analysis gets more complicated because a debtor in Bankruptcy has a certain exemption of an amount of equity in the home from which it can have certain types of liens stripped off. Whether or not that could/ should have happened in your circumstance is more than I am able to address in this forum. You may want to contact your bankruptcy attorney.
Therefore, the lien may still be valid today.
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