Reply
New Contributor
DeeWill
Posts: 52
Registered: ‎05-15-2008

Bankruptcy Question

I inherited a property that should have gone under foreclosure but the bank opted to put a lien on the property.  Can this lien be included in bankruptcy proceedings? Can a tax lien be included?

Valued Contributor
ezdriver
Posts: 1,500
Registered: ‎08-24-2013

Re: Bankruptcy Question

Liens that have been recorded at least 30 days [in Florda...may be different in your State] survives the bankruptcy process. A bankruptcy discharge will remove the bankruptcy filer's liability for the debt but it does not remove the lien from the property. The debt has to be settled and the lien vacated via court action by the debtor. Tax liens [eg: IRS] can be released so the property can be sold by the lender but that happens only if there is insufficient equity to pay the IRS debt. If the taxes are owed to municipal authorites, I believe that they must be satisfied by someone before the title can be transferred. I tried to answer based on your vague information.



Starting Score: 618
Scores on 10/9/13: EFX 652, XPN 669, TUC 662
Scores on 3/17/14: EFX 649, XPN 677, TUC 681
Goal Score: 720 ALL


Take the myFICO Fitness Challenge

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+