Legal Question in Bankruptcy in Maryland

Creditor problem after chap 7 discharge

I received my Discharge but still dealing with an issue. During my financial problems I sold property to someone that had a valid lien on it. Bank froze account and I could not pay the lien off. Person knew property had a lien so no deception there. Now property to be repossessed and I do not have funds to pay person who bought the property. They knew of my filing though not listed in my creditors. They did not come forward to petition court. I have learned that in Maryland all debts were discharged regardless of whether creditor was listed or not especially if they knew about the filing before the discharge. I just do not have the money to repay this person. Can lien holder go and get the property? Should I tell them where it is. I am very confused and wonder if this should not have been handled by the bankruptcy court. I just do not know what I should do. Where does this put me legally. Would appreciate some help on this.


Asked on 4/25/08, 6:43 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Creditor problem after chap 7 discharge

You have no obligation to the lien holder or the purchaser. The purchaser cannot assert a claim against you if s/he has to satisfy the lien or lose the property - that claim was discharged (although unscheduled creditors WITHOUT timely knowledge of the bankruptcy can still assert non-dischargeability due to fraud and willful/malicious injury - but you say they had knowledge). The lienholder can try to require you to disclose the location of the property. I would note that if your schedules were misleading or incorrect as to whether you still owned the property subject to the lien, you could face problems.

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Answered on 4/25/08, 7:52 am


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