Removing Liens From Your Home in an Oklahoma Bankruptcy
For many debtors exploring their options on bankruptcy, the event that pushes them to contact a Tulsa bankruptcy attorney is being garnished
In addition to a garnishment, a creditor who successfully sues a debtor who owns real property, such as a home, can attempt to collect by placing a “judgment lien” against the property. A judgment lien is a non-consensual lien placed with county records against the debtor’s property with county records, almost always without the debtor’s consent or knowledge. If that lean is not satisfied or released in some way, it can prevent the debtor from selling the house in the future. Given the fact that most debtors in this situation don’t know that the lien is in place, it can come as a nasty surprise when the debtor tries to sell.
Fortunately, there are remedies for this situation in bankruptcy. A monetary judgment by a creditor is dischargeable so long as the underlying debt is dischargeable. So, if the lawsuit was over a medical bill, credit card debt, unpaid auto loan, or other type of dischargeable obligation, the judgment can be made to go away. However, this does not make the lien automatically go away. Because the lien is a separate legal instrument from the debt itself, a separate process must occur to terminate it. That process is called the Motion to Avoid a Lien. In order to file a motion to avoid a lien, a debtor’s bankruptcy attorney will require a copy of the deed (which he or she should have from the bankruptcy filing). Once the bankruptcy case has been filed and the meeting of creditors conducted, the attorney can then draft the motion and file it with the court. The court will give the creditor two weeks to respond to the motion, and if there isn’t a response, the court will then grant the motion. That officially terminates the lien, and should clear up any problems it caused with selling the house.
For some people, because they were never informed that a lien existed in the first place, they can proceed all the way through their bankruptcy, have it discharged and closed, and only find out years later about the lien when they try to sell their property. This can come as a surprise, as most people simply assume that the bankruptcy took care of all of their problems (though as noted above, absent the motion, the lien is not terminated). Fortunately, the courts grant relief for people in that situation. If the lien was from a debt that was discharged in the person’s bankruptcy, even if that bankruptcy was years ago, the court will allow the case to be reopened, and a motion to avoid the lien filed. This does cost a reopening fee, but that fee is certainly worth paying if it clears away the impediment to selling the affected property.
A final word of advice for those seeking bankruptcy services: know your situation. If you are a homeowner, and you have been sued by a creditor, and that creditor obtained a judgment, it is entirely possible that they have filed a lien against your home. If you think that could be the case, contact your county’s land records office and have them search for any liens against your property. With the proper knowledge, you can start your bankruptcy process better informed and better able to inform your attorney what you need help with. As always, if you have questions about your financial status and are considering bankruptcy, you should contact a local attorney who can provide you with the help you need.
Contact a Tulsa Bankruptcy Attorney
If you live anywhere in Oklahoma our Tulsa bankruptcy attorney can help you file either a chapter 7 bankruptcy or a chapter 13 bankruptcy. Our Tulsa bankruptcy attorney will sit down with you and help determine if bankruptcy is the best sollution for you. To get a free consultation call today and speak to a Tulsa bankruptcy attorney.
Tulsa Bankruptcy | Removing Liens From Your Home
http://tulsabankruptcylawyers.net/tulsa-bankruptcy-attorney-removing-liens-from-your-home-in-bankruptcy/
