Lien strip after discharge

[patieboy38]

Hi all,
Finally got my discharge order. Paid off the plan in month 54 and did not have to pay 100% back , FYI.

Does anyone know what I need to do to actually remove the lien that was stripped? I called the bank , they still have it as an active lien. Do I just send them the discharge or do I need to send them the motion, etc?

Anyone know?

Thanks and ping me if you have any q's about the discharge process and early payoff.

[justbroke]

A lien strip only works if you actually filed either a Motion to Determine Secured Status and Strip Lien or a Complaint (AP-Adversary Proceeding) to Determine Secured Status. (Whether it's by motion or complaint is based on your specific local rules.) If the lien strip was granted, you would have a signed order granting the lien strip effective (usually) upon discharge. Some of those lien strips orders are recordable. (Your attorney should know if you have a recordable lien strip).

If you did not file such a motion or AP, then the lien is not stripped and it is, quite frankly, too late to do so.

(Please be aware that I deleted your duplicate thread on this topic. Please refrain from creating duplicate threads as they will dilute your responses and the thread topic will become disjointed.)

[patieboy38]

Thanks JustBroke -
It was listed in My Chapter 13 Plan and Motion, before confirmation. It's a Motion to Void Liens and Reclassify Claim from Secured to Completely
Unsecured. There was an Order Confirming Chapter 13 Plan with notes that all Motions included in plan are Granted. Not sure what other orders would be needed.

[vanillasky]

Curious..How did you pay off plan before 60 months and not have to pay 100%?

[patieboy38]

I just submitted a payoff request and it came back in line with what i owed for the base plan. My attorney says after 36 months , you should not have to pay back 100% and can leave the plan early.

[vanillasky]

Interesting.. I'll talk to my attorney and see if that would slide in my district. My base plan was for about 10% of what we owed and we're due for a discharge in the 1st quarter 2016.

[patieboy38]

Doesn't hurt to ask. There should be a website from your trustee with instructions. Mine was simply an email with an official request for an amount. They did ask where the $ is coming from (I said savings from tax returns / last 4 years).

[justbroke]

It was listed in My Chapter 13 Plan and Motion, before confirmation. It's a Motion to Void Liens and Reclassify Claim from Secured to Completely Unsecured. There was an Order Confirming Chapter 13 Plan with notes that all Motions included in plan are Granted. Not sure what other orders would be needed.

Send a copy of the discharge along with the Confirmed Plan and the Order Granting Motion to Void Lien. That should clear it up for the bank. In your cover letter, make sure you tell them that they are in violation of the discharge injunction and that should they not release the Mortgage forthwith, you will re-open the bankruptcy case (if it's closed) to seek sanctions and an order completing the release.

[LadyInTheRed]

In my district, you get an order valuing lien before confirmation. Then, after the plan is complete, on the request of the debtor, the court will issue a Judgment Voiding Lien which the debtor can have recorded with the county recorder. Check your court's local rules to see if there is guidance on the procedure. Or ask your attorney.

[spidge]

Curious..How did you pay off plan before 60 months and not have to pay 100%?

If one is under median and not paying 100% of your debts there is usually an option to finish early. You still have to pay 100% of your plan base.

Our district decided half way through my ch13 that all lien strips will have to go through an adversarial proceeding in order to complete it. Fires me up as my plans were already in motion and the extra expense is not appreciated.

[patieboy38]

In my district, you get an order valuing lien before confirmation. Then, after the plan is complete, on the request of the debtor, the court will issue a Judgment Voiding Lien which the debtor can have recorded with the county recorder. Check your court's local rules to see if there is guidance on the procedure. Or ask your attorney.

Thanks!

[patieboy38]

If one is under median and not paying 100% of your debts there is usually an option to finish early. You still have to pay 100% of your plan base.

Our district decided half way through my ch13 that all lien strips will have to go through an adversarial proceeding in order to complete it. Fires me up as my plans were already in motion and the extra expense is not appreciated.

It think it varies by district. I'm over the median.

[patieboy38]

In my district, you get an order valuing lien before confirmation. Then, after the plan is complete, on the request of the debtor, the court will issue a Judgment Voiding Lien which the debtor can have recorded with the county recorder. Check your court's local rules to see if there is guidance on the procedure. Or ask your attorney.

That's exactly what I need , thanks Red!

[patieboy38]

Send a copy of the discharge along with the Confirmed Plan and the Order Granting Motion to Void Lien. That should clear it up for the bank. In your cover letter, make sure you tell them that they are in violation of the discharge injunction and that should they not release the Mortgage forthwith, you will re-open the bankruptcy case (if it's closed) to seek sanctions and an order completing the release.

Done! Thanks again. I'll update

[dmc-2008]

If one is under median and not paying 100% of your debts there is usually an option to finish early. You still have to pay 100% of your plan base.

Our district decided half way through my ch13 that all lien strips will have to go through an adversarial proceeding in order to complete it. Fires me up as my plans were already in motion and the extra expense is not appreciated.

Wait.... What??? I am doing a lie n strip, it was granted. I am almost 2 years in. Do you mean they can rethink this????? Omg!