Our BK Chapter 7 was discharged in March, but the trustee hasn't closed the case yet, because she's still holding about $6,000 of cash in her trust account, and because of this amount she actually changed the case from No-Asset to "Asset Case".
The main reason we even filed for a BK because we had a judgement recorded on our house from CitiMortgage (deficiency judgement from a foreclosure of another property two years ago, if you can believe it). We are trying to sell our house as a short sale, and filed for BK to clear title from this judgement, because Citi didn't want to negotiate at all, they wanted all or nothing, even though they were behind 1st and 2nd loans.
Now we have a problem: The BK has been discharged over 3 months ago, the Trustee abandoned the property last month so we can proceed with the short sale, however, the Trustee is now waiting for any claims from creditors until September 1st and doesn't want to close the case until then. In the meantime, the title company tells us that discharges means nothing when it comes to title, and that they can only remove the judgement AFTER the closing of the case. We are within a week of getting the short sale approved, and now we can't sell again, because this judgement from Citi is blocking the sale again.
Any advice? Any suggestions if there is a way to remove this judgement that is clearly discharged but the case is not closed???? Please help!! Our BK attorney is totally useless!
This is California case, by the way.
THANKS!!!
The main reason we even filed for a BK because we had a judgement recorded on our house from CitiMortgage (deficiency judgement from a foreclosure of another property two years ago, if you can believe it). We are trying to sell our house as a short sale, and filed for BK to clear title from this judgement, because Citi didn't want to negotiate at all, they wanted all or nothing, even though they were behind 1st and 2nd loans.
Now we have a problem: The BK has been discharged over 3 months ago, the Trustee abandoned the property last month so we can proceed with the short sale, however, the Trustee is now waiting for any claims from creditors until September 1st and doesn't want to close the case until then. In the meantime, the title company tells us that discharges means nothing when it comes to title, and that they can only remove the judgement AFTER the closing of the case. We are within a week of getting the short sale approved, and now we can't sell again, because this judgement from Citi is blocking the sale again.
Any advice? Any suggestions if there is a way to remove this judgement that is clearly discharged but the case is not closed???? Please help!! Our BK attorney is totally useless!
This is California case, by the way.
THANKS!!!
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