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Is the Stay "lifted" after discharge even if...

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    #16
    Hi cowgirl,

    Finishing up on your previous post:

    it's very vague as it applies to the "secured" aspect more confusing than vague....

    Apparently there are 3 secured interests (lien holders) on the house: the mortgage company, the IRS, and the Ex

    The discharge took BF off the hook from owing $$, but the liens survive the BK. Its like they own a chunk of the property. After discharge, any one of the 3 can take steps to recover their interest (foreclosure) The liens get paid 1st, 2nd, 3rd, and BF gets whatever is leftover.

    If the foreclosure sale doesn't get enough $$ to pay everybody, people on the bottom of the food chain don't get a share. Normally.

    But the IRS gets paid no matter what. Their debt was not discharged in the BK, if the house sale doesn't get them their $$, they go after it by other means (and they can get mean!)

    IF the Ex's lien was from a decree in the divorce court, it probably was not discharged in the BK. She gets that $$, if house sale doesn't cover it, she can go after it by other means.

    AND...being divorced, if she is still on the mortgage, she is still liable for the debt. AND she has a 1/2 claim to the property.

    UNLESS...the divorce decree says otherwise.

    Very confusing, here is where a good lawyer earns their fee....

    Tom in Colo
    Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

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