Legal Question in Bankruptcy in Pennsylvania

I have been researching this...and get lots of different advice and information. I am at a loss of what to do! Here is the rundown...

7/2004 Civil Case served by my Mortgage Company for mortgage foreclosure

8/2004 went to a bankruptcy lawyer with the suit in hand to file for Chapter 13, was told by attorney that I shouldn't do anything and when it came closer to sheriff sale...she would file Chapter 13 for us. (being scared at the time...I followed her advice and did nothing...needless to say they got a default judgment against me.)

12/2004 Civil Judgment from gas company (I was never served with this and just recently found it while researching the previous judgment)

2/2005 filed for Chapter 13 bankruptcy (stopped sheriff sale...included mortgage company and repaid arrearages, included debt to gas company as well)

7/2010 Discharged from Chapter 13

I ran my credit report and see that this judgment still appears open...contact bankruptcy attorney and she says it doesn't matter cause after all anyone can see they didn't foreclose on us?

Look up on court website and the last notation is 5/2005 "writ stayed by plaintiff attorney". The civil judgment from gas company has no updates (just says filed on 12/2004).

While researching this it seems that I need to file a "motion to vacate" judgments...so I go to the court house with all information and am told to go to the creditors and request that they do it. I call the gas company and they say that since the judgment was filed before my chapter 13...I still have to pay them. I told them that they never served me so I didn't even know about this suit and that they were included in bankruptcy. (the docket has no info in it except that judgment was file on 12/2004 and thats it).

I still feel like I am at the creditors mercy to clean this mess up...don't know what else to do.

3/26/2011 sent letters certified to Mortgage company attorney's, mortgage company, and gas company requesting them to "vacate judgments" as of my rights under bankruptcy protection and stated US Code TITLE 11 > CHAPTER 5 > SUBCHAPTER II > � 524 Effect of discharge (a) A discharge in a case under this title� (1) voids any judgment at any time obtained,

Does anyone have advice as what else I can do? or should be doing? My husband and I want to sell our house and don't want these discharged debts coming back to haunt us. I did visit the recorder of deeds office and it didn't appear that any liens were placed on our property.


Asked on 3/29/11, 4:16 am

1 Answer from Attorneys
Ellis Klein Young, Klein & Associates

You need to file a Motion to Avoid Lien in Bankruptcy court. The problem is that this should have been done prior to the case being discharged. You would now have to open up the BK and file the lien and is much more involved since there would be a hearing first for the judge to determine if he will allow you to reopen the case, and if that is approved, then you could file the Motion to Avoid the lien.

It is too complex to handle this yourself - I would complain to your attorney that handled the BK that the Motions to Avoid were not filed and should have been. If you get no satisfaction, you should hire a different attorney.

If you have any questions, I can be reached at 215-639-5297.

Ellis Klein, Esquire

Read more
Answered on 3/29/11, 4:30 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Pennsylvania