What is Release of Lien?

[bkbirdie]

I just got a notice of Release of Lien in the mail today from the County Clerk. One of my creditors got a judgment against me in late September. I filed Ch. 7 on October 26, and my attorney had me go down to the county clerk's office that day to find out if there was a judgment lien against my house. There wasn't. Apparently the creditor recorded the judgment in the county recorder on November 3. This Release of Lien paper is dated November 12. It says "Plaintiff hereby releases said lien upon the recordation hereof." What does this mean? Thanks in advance for any help!

[music12]

probably it means that the plaintiff who got the judgment had it recorded on nov. 3 not knowing you filed on oct 26. when this plaintiff learned about your bk, they did what they were supposed to do: undo the lien, or else they would be in knowing violation of the automatic stay which was already in effect on nov. 3.

[jjsmith]

You are very lucky that they released the lien without you having to hassle them. Most creditors don't release their liens on their own accord. But technically the creditor filed an invalid lien which would entitle you to damages. They've removed it because they'd rather not have to pay you damages.

[bkbirdie]

Thanks

Thank you music12 and jjsmith for your help. I feel better now. This forum has been a lifesaver!