Legal Question in Bankruptcy in New York

which has preferrence,bankruptcy or liens

back in 1999 ihad filed for bakruptcy which included a car that was repossed.to my knowledge i never recieved any notification that a lien was placed on my home.upon the bankruptcy completion i thought that i was cleared of all my debt.i am in the process to refinance my home and i can't because the company that financed the car will nt release the lien. they state that the amount must be paid off first. I told them that in that tme i had filed for bankruptcy and they stated that it doen't matter becaus they had filed a judgement first. the judgement according to them was filed in dec. 98 and the bankruptcy was filed in jan 99. what can i do to straighten this matter. some had told me that a letter of avoidance should have been filed before the process by the bankruptcy lawyer. please advise me


Asked on 12/30/02, 4:21 pm

1 Answer from Attorneys
Lance Spodek Lance Roger Spodek, P.C.

Re: which has preferrence,bankruptcy or liens

Chapter 7 bankruptcy has no effect on liens. They pass through bankruptcy uneffected. However a lien "placed" within 90 days before the bankruptcy is filed can sometimes be avoided (removed). This aspect of your case should have been considered at the time your case was filed. Review Bankruptcy Code section 350 (b) regarding the reopening of your case to attempt to "avoid the preference" obtained by the lien (provided it was placed within the 90 day period).

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Answered on 12/30/02, 5:04 pm


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