In bankruptcy, debts are either reaffirmed (you will need to continue paying on them) or discharged (forgiven). In some situations, especially prior to the bankruptcy filing, lenders may contact a court and have a judgment ruled against the debtor. In some cases, the complaint may result in a lien against property, including a home. If a lien is in place, the property cannot be sold or otherwise transferred until the lien is removed.
In some situations, your may file bankruptcy and have the debt discharged and still have a lien on the property to manage. When this occurs, you will need to take extra steps to get the lien removed.
It may be possible to contact the lien holder directly and request the remove. If the debt was forgiven during the bankruptcy through discharge, the lien holder does not have a legal right to require you to repay the debt and may be in violation of the law if the lender tries to require this. Discuss your options with your attorney before filing any claims or before filing any motions.
Updated by: Kathleen Michon, J.D.