Creditor Files A Lien After A Chapter 7 Bankruptcy

Sometimes after a client files bankruptcy, a creditor who had an unsecured debt files a lien with a judgment obtained before the bankruptcy was filed.

The lien is likely invalid and can be removed.  Most likely, the creditor did not have knowledge of the bankruptcy when the abstract judgment was recorded.  By contacting the creditor or their lawyer directly they will voluntarily remove the lien.  

If the creditor refuses, an adversary proceeding in the bankruptcy court can be filed to remove the lien and possibly seek monetary damages for a violation of the fair debt collection acts.  Because of the time and cost, hopefully this will not be necessary. 

But you should review all of the facts with an attorney and then take steps to get it removed as soon as possible.  

Ken Jorgensen, California Attorney
www.fresnobankruptcylawgroup.com

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