Legal Question in Bankruptcy in New Jersey

Remove of Lien after Bankruptcy

How can you remove a lien from a boat title after bankruptcy. We filed for Bankruptcy in 1991 and still have a lien showing on the title for our boat. We would like to now sell the boat but are unable to remove the lien for clear title. The bank never took possession of the boat after we filed for bankruptcy. Since then the bank had gone under and was taken over by government banking industry and was later sold several times over. We can not find anyone from the banking industry to remove the lien on this boat. Can you advise how we can get the lien remove from this title? Thank you!


Asked on 4/23/02, 10:32 am

2 Answers from Attorneys
Glenn Reiser LoFaro & Reiser, LLP

Re: Remove of Lien after Bankruptcy

The answer depends on whether you owned the boat at the time of your bankruptcy, the amount of equity, if any at that time, and whether you listed the boat in your schedule B of your bankruptcy petition. If the answer is yes to these questions and assuming that the Chapter 7 trustee abandoned any claim to the boat, then it would be appropriate to reopen your bankruptcy case and request that the lien be removed. This requires the filing of a motion.

Alternatively, you could petition the state court to remove the lien. This too requires the filing of a motion in the court where the underlying judgment was entered.

I have handled about a dozen of these cases over the past few years, and therefore am quite familiar with the process. I would be glad to help you with this situation. My number is 201-498-0400.

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Answered on 4/23/02, 10:55 am
Eric Kochel The Law Office of Eric David Kochel, Esq., P.C.

Re: Remove of Lien after Bankruptcy

You can file a "Motion to Avoid a Judicial Lien". Check with the clerk of the court where you filed for details. You may need a court date for a hearing. In your case this will be a formality. The other side (the holder of the lien - not the bank)will likely not show up and you will be granted your Motion. Then the Lien will be officially removed. You will get a copy of the Court Order to show to anyone who you want.

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Answered on 4/23/02, 2:37 pm


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