Quote:
Originally Posted by taxgirl
I disagree: if the lien is place because of a debt owed to the attorney and bankruptcy court discharges the debt listing the attorney as the creditor to whom the debt is owed, how can he foreclose on the lien, wouldn't that be a fraudulent foreclosure? Your answer doesn't ring right with me John, what are you basing this on? Only because I have seen it happen the opposite.
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Well, first, SOCRATES01 just didn't provide enough facts to give any sort of truly useful answer. I suppose the correct answer is "it depends."
But it's true that a bankruptcy doesn't usually eliminate liens. Otherwise, you'd see all kinds of people in places like Texas and Florida with free houses. They'd buy the houses with mortgages, refuse to pay the lender, file for bankruptcy prior to foreclosure, then laugh at the lenders as the mortgages are discharged and the liens are eliminated. If you stop to think about it, you'll probably realize that doesn't happen. If a mortgage is not paid, then the lender can eventually foreclose -- bankruptcy or no bankruptcy.
There are certain kinds of liens that can be eliminated under certain chapters of bankruptcy, however. For example, if there is not enough value in the collateral after subtracting any senior lienholders' interests, then junior liens can be discharged as unsecured debt. Also, judgment liens can be discharged if they interfere with a debtor's state homestead exemption.
So, in order to provide a useful answer, we'd need to know how the lawyer got the lien, what state SOCRATES01 lives in, whether the house with the lien is a homestead, what chapter of bankruptcy he plans to file under, whether there are any senior liens, and probably a few other facts that I can't think of off the top of my head.
That's why my original answer provides the general rule, but is also left open.