In Chapt 7 and Just Found Out There is a Lien on Our House, What to do about it?

[Anonymous]

Ok so 3 years ago we originally filed a Chapt 13 and had to stop after 3 years, Now we are in a Chapt 7. Well today we find out that our house has a Lien on it because we owe $2,530 to HHGreg. This debt was added to out Chapt 13, 3 yrs ago. We were on a payment plan with the collection company that bought the debt before we filed the Chapt 13. We got no notice from the courts that our has has a lien, Are they not suppose to inform the home owners?

So now fast forward, we just filed Chapt 7 a few weeks ago. So our attorney had his secretary to check and see if there was a lien before our 341 meeting since we are adding a few more debts. What will happen now concerning our home? We have no equity built up and we have re-affirmed it. I have no clue what this means, because this debt was in our Chapt 13, how could they take a lien out. The atty said he would have his office call the atty handling the lien to see if they will close it and take the lien off since we are now in a chapt 7. Thoughts,tips ? Thanks

[ezdriver]

Sounds like your attorney is taking the appropriate steps on your behalf. What happened to the ch13 case? In what state is this property? Some states do not allow liens on residential property for consumer debt?

[Anonymous]

We had to dismiss the Chapt 13 for financial reasons so the lien was taken out a few months prior to us filing the Chapt 13 but we had no knowledge there was a lien on our home. This is in TN. So now our atty is going to call them tomorrow and see if they will take the lien off since we are in a chapt 7 and the debt is not that much, plus we have no equity in our home. If they will not agree to taking the lien off then we have to pay our atty an additional $300 to file to strip the lien. Its just a friggin nightmare and now more money to have to pay the atty.

[ezdriver]

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@Anonymous wrote:

We had to dismiss the Chapt 13 for financial reasons so the lien was taken out a few months prior to us filing the Chapt 13 but we had no knowledge there was a lien on our home. This is in TN. So now our atty is going to call them tomorrow and see if they will take the lien off since we are in a chapt 7 and the debt is not that much, plus we have no equity in our home. If they will not agree to taking the lien off then we have to pay our atty an additional $300 to file to strip the lien. Its just a friggin nightmare and now more money to have to pay the atty.

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I don't see any reason to be concerned about that lien. Since the debt will be included in your ch7, and discharged eventually, the 1st mortgage lender will deal with it. That said, your attorney is taking the right steps ... and the $300 fee is very reasonable ... unless you want to do it yourself.