Liens Survive Discharge
A Chapter 7 discharge relieves you of responsibility for your debts, but the debts still exist -- you’re just no longer obligated to pay them. If a creditor sued you and got a judgment against you before you filed for bankruptcy, and it then used the judgment to place a lien against your property, filing for bankruptcy won’t affect the lien. It lives on.
Reopen Your Case
You can ask the court to “avoid” or remove a lien as part of your bankruptcy proceedings, but your case must be active to do this. If you’ve already received a discharge of your debts, you’ll have to file a motion with the court, asking to reopen your bankruptcy case.
File a Motion to Avoid the Lien
After you’ve reopened your case, you must file another motion that asks the court to avoid the lien. You must establish the fair market value of your property and show that it’s worth less than the outstanding loan against it. If it’s worth more and it's your residence, you can apply a bankruptcy homestead exemption to the equity. If the equity is more than your available homestead exemption, you may not be able to avoid the lien.
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