Bankrupcy

Can a lien placed on a home from a lawyer's fee be removed in a bankrupcy case? Thank you.

Unfortunately, bankruptcy doesn't generally eliminate liens. So, although the underlying debt may be discharged, the attorney could likely foreclose on the property. Of course, you haven't provided many facts, so it's hard to say ...

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.

I'm afraid I agree with John. Bankruptcy does not generally aleviate liens.

Will a bankruptcy filing absolve all debts?

No. Certain obligations will remain after a filing, such as child support payments for individuals. Nor does bankruptcy eliminate liens on property. It is yet another reason to consider bankruptcy carefully.

Lien: a creditor’s legal claim on assets or property secured by a debt. A bankruptcy will not necessarily eliminate a lien without a court invoking or initiating certain procedures
Understanding Bankruptcy | BNET

a creditor’s legal claim on assets or property secured by a debt. A bankruptcy will not necessarily eliminate a lien without a court invoking or initiating certain procedures.

Okay, what are the certain procedures? What's the absolute drop dead procedure for keeping the attorney lien from being foreclosed on?

"As a general rule, an attorney's lien takes precedence over other statutory liens against a recovery by way of settlement or judgment............. Section 484.130, RSMo 1994, provides that an attorney's lien attaches to a "client's cause of action or counterclaim, which attaches to a verdict, report, decision or judgment in the client's favor and the proceeds thereof in whosoever hands they may come. . . ." The statute provides that the lien "cannot be affected by any settlement between the parties before or after judgment."7

Few highlights from a good article: http://www.mobar.org/journal/2000/julaug/bradford.htm I did NOT read it all at this late hour, and its too long to copy and paste, so here's the link....

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.

That's a great example........someone with a first and second mortgage, whose property value has declined.......house goes into foreclosure and isn't sold for enough to pay off the secondary and usually a deficiency judgment isn't even worth their time.

Great example.

That's what I was thinking the first time, I didn't have my mind on a mortgage lien, I was thinking about the attorney debt as an unsecured debt, or credit cards, or any kind of a subcontractor lien where the homeowner filed for bankruptcy and the debts were discharged and the liens were technically not satisfied but the court viewed them as uncollectible due to the 1st or in some cases 2nd mortgage liens on the house that had to be considered first in a sale and paid off. So my question is answered, thank you John for the detailed feedback.