Legal Question in Bankruptcy in Massachusetts

Re: Disposition of Lein

You have three options:

1. file a motion to have the creditor held in contempt in bankruptcy court, which will require reopening the case and costing you money;

2. file a motion to discharge the lien in the court it was originally issued from;

3. if the creditor is licensed in MA, file a complaint with the appropriate state regulating entity.

If the creditor is one of the nationally infamous companies, you may have a long battle.

If the bankruptcy did not pay the creditor in full, and they had a legitimate lien for the full value of their claim, you may have a different problem. If you had a lawyer for your bankruptcy, you should get a clearer explanation of what happened. If you did it yourself, you will need to consult me or another attorney, because you give very little information to work with.

Re: Disposition of Lein

Normally, a bankruptcy will not affect a lien unless you take affirmative steps to do something about it. Unlike the underlying debt, a lien stays on the property until the judge explicitly orders it removed. Not all liens can be removed, so I would have to know more about the lien before I could say if it could be removed. If you would like to discuss this, call me. David Baker

Re: Disposition of Lein

If the creditor has been paid, the lien should be removed without any delay. The closing attorney or your attorney should contact the creditor and demand that the lien be removed. Maintaining the lien after the debt has been paid and discharged could be a violation of your chapter 7 discharge. I would be happy to speak to you about this at a time of your convenience.