Legal Question in Bankruptcy in Maryland

Is there a lien that survives?

H&W own home as tenants by the entirety. A judgment is entered against H only long before filing of Chapter 7. Uneventful no asset bankruptcy and discharge follows. Several years later H&W enter into a Sep Agreement--wife is to get home. No conveyance is recorded. Parties divorce. Is the property encumbered? Upon divorce, prop is now tenants in common. W gets a contract to sell house and title company says that ''lien'' must be satisfied.

Are they wrong? Judgment was discharged in 7 and the lien could not attach to prop and survive because prop was t/e. When the parties divorce there is no remaining ''debt'' . The lien did not attach before t/e was broken . Can the law possibly be such that the client is created and attached to the H's interest when they divorce?


Asked on 1/05/02, 8:22 am

2 Answers from Attorneys
Daniel Press Chung & Press, P.C.

Re: Is there a lien that survives?

The lien does not attach unless it attached before the discharge in bankruptcy. If the property was properly held as t/e, and the bk was filed before the divorce decree was entered, the lien never attached upon severance of the t/e, and the property can be conveyed free and clear of the lien. The title co. needs to get proper legal advice.

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Answered on 1/06/02, 2:16 pm
Joseph Trevino Law Offices of Joseph A. Trevino

Re: Is there a lien that survives?

SOunds like a lawyer or paralegal wrote this question. But even to the trained legal professionals, this area is baffling. It is going to be quite a challenge to "clear" the title, which is what it all boils down to. You are on the right track. Timing is critical, when did the lien attach and could it legally attach.? That's the key and you are very perceptive. The title people obviously don't want to buy into a lawsuit and the lien holders are not going to work in the owners favor. If the dollar amount is high enough it may be worth putting some legal muscle behind it. Best of luck.Call me for more details. Joe Trevino, 1800-924-6217.

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Answered on 1/05/02, 11:03 am


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