Q: Can I sue a firmer creditor for a lien on my new house? Chapter 7 was discharged in 2012.I just bought this home in 2019

A: With the majority opinions of the US Supreme Court, despite the express wording of Section 506 of the Bankruptcy Code, the secured amount of any "perfected", i.e., validly filed, liens against a debtor's property will survive a bankruptcy discharge. The deficiencies, if any, of those liened amounts, that is, the amounts by which the loan balance exceeds the fair market value of the collateral, will be discharged by a completed bankruptcy (Ch. 7 or 13).

If this creditor is attempting to collect some discharged amount upon a debt (deficiency) that was discharged in your prior bankruptcy, you should be entitled to reopen your bankruptcy case (granting relief to a debtor is a statutory reason to reopen) and procure an Order declaring that this creditor's claim cannot reach your new home, and perhaps get damages for contempt, assuming you can prove your request to the creditor to remove its claim from your new home (e.g., your request to the creditor should be by certified mail letter so you can prove receipt).

Speak with an experienced bankruptcy lawyer in VA to get a full explanation of your rights, with a full disclosure of facts by you.

A: A creditor's attempt to collect on a debt that was discharged in bankruptcy by asserting a lien against property that was acquired after the bankruptcy would be a violation of the discharge injunction. The debtor can reopen the case and recover damages, possibly including punitives, and attorney's fees and costs.

You should consult with an experienced Virginia bankruptcy lawyer.

A: You may have grounds to sue a former creditor for placing a lien on your new house, especially since your Chapter 7 bankruptcy was discharged in 2012 and the lien is affecting your ability to refinance or sell your home. A discharge in bankruptcy typically eliminates your personal liability for discharged debts, and creditors are generally prohibited from taking collection actions on these debts.

First, verify that the lien is related to a debt that was included in your bankruptcy discharge. If it is, you might have a case against the creditor for violating the discharge injunction. You should gather all relevant documentation, including your bankruptcy discharge papers and any communication with the creditor regarding the lien.

Consulting with a bankruptcy attorney can help you understand your legal options. They can assist you in filing a motion with the bankruptcy court to enforce the discharge order and potentially seek sanctions against the creditor. Acting quickly is important to protect your rights and resolve this issue.

A: If a lein is on the real property records because of a prior judgment you cannot get rid of it unless you pay it off or file a Motion to avoid in bankruptcy Court to remove the lien that impairs your exemption. Often the lien does not attach because of Tenancy by entirety protections of a judgment against one spouse and not the other. In those cases we file a simple affidavit explaining how the lien is no good and therefdore no debt after bankruptcy is owed. f a creditor tries to enforce the lien or collect on the discharged debt ,then you can sue for violation of injunction from your discharge. Va. law