Legal Question in Bankruptcy in Maryland

Validity of Liens after Chapter 13 Discharge

An unsecured creditor obtained a judgment prior to a couple filing for chapter 13 bankruptcy. The creditor was included in the chapter 13, as unsecured and paid a portion of the debt. After the couple were discharged from the chapter 13, a lien still shows on their home's title that the creditor is owed. Doesn't a lien signify that the creditor is secured, and if so, why would the creditor agree to be listed as unsecured with the bankruptcy court trustee. Is the couple required to satisfy the lien at this point? Are the attorneys responsible in any way?


Asked on 1/09/06, 1:09 pm

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

Re: Validity of Liens after Chapter 13 Discharge

The lien survives unless avoided in the bankruptcy. It may be possible to reopen the bankruptcy case to avoid the lien, but if that is not possible it still attaches and will have to be paid to avoid a sheriff's sale of the property.

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Answered on 1/09/06, 2:51 pm


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