Discharged! Now creditor wants to repo

[007nco]

My Ch 7 was discharged on Feb 27th.)!) I have one particular creditor that requested a relief from stay 5 days before the discharge. The creditors debt was also discharged. This creditor tried to file a lien but failed to file a notice of intent to file in accordance with CO law, and has exhausted their chance to perfect a lien. They also missed the date to object to a discharge.
My questions is, do they still have some right to reposses if the debt was discharged and the lien failed and I listed them as a creditor? Why would they be seeking relief from stay etc?

[jenski]

i have no clue. but just wanted to answer your post and let you know that i'm in colorado also.

if things happened as you outlined, i would say (and I am not a lawyer or anything close) they have no recourse at this point in time.

[lrprn]

Call your lawyer now to discuss whether this is something to worry about. Although you are discharged, it sounds like your case is not yet closed - true?

Also for now I would not keep anything you really need in the car whenever you leave it anywhere. Although it's very rare, we have had a member here whose credit union repossessed their car after their auto debt was discharged in a successful five-year-long Ch 13. Some creditors (especially credit unions) are arrogant beyond all reason and truly believe they are above the bk law. Hope this is not the case in your situation.

[007nco]

Yeah, my lawyer removed themself from the case as it was above and beyond what we had paid for in the filing...
Anyway if I have to retain another, I get a better one in the loop a little since this creditor has done everything they could think of to hassle us through the BK. This creditor filed adversary precedings earlier, Claiming fraud this and that, so on... all dismissed.
It is not closed as of yet and supposedly the atty for the creditor has set up a hearing for us to object to the relief of stay on March 13th, 2 weeks after the discharge.(?) I thought stays were over when it was discharged. I am thinking their atty is taking them for one heck of a ride from what I can find out. PACER says nothing since the discharge though.

[007nco]

Thanks for the replies thus far. No; not an auto. It was from a contracter that had done some work to my property. We disputed the bill, etc. We have less than 10k in equity on the property (homestead) The contractor wants to come on the property and tear out the work they had done. (and it is gated, fenced and posted.) I'll check the SOS too, good idea.

[EveryDayAdam]

I would definitely contact an attorney. Sounds like they are throwing everything & the kitchen sink at you to get their money. I would contact your BK attorney and see if this is something that you can pay him extra for, or if he would recommend another attorney to talk to.

[FreshLikeADaisy]

Adam, I don't know, I almost think a real estate attorney would be a better bet at this point, because it has a lot more to do with an attempt to file and perfect a lien than with successfully concluding a bankruptcy. Good thought though, if he got a bk atty with good real estate knowledge he would have the best of both worlds.

Also, 007, if your bk is discharged but not closed, and this particular debt has been the subject of adversarial action by the creditor, how is it that THIS debt has also been discharged? I thought that if there's a creditor objection that debt remains undischarged until the specific objection is settled. I could be very wrong, it just seems unusual. You might want to check that out. Good luck!!!

[EveryDayAdam]

Adam, I don't know, I almost think a real estate attorney would be a better bet at this point, because it has a lot more to do with an attempt to file and perfect a lien than with successfully concluding a bankruptcy. Good thought though, if he got a bk atty with good real estate knowledge he would have the best of both worlds.

Also, 007, if your bk is discharged but not closed, and this particular debt has been the subject of adversarial action by the creditor, how is it that THIS debt has also been discharged? I thought that if there's a creditor objection that debt remains undischarged until the specific objection is settled. I could be very wrong, it just seems unusual. You might want to check that out. Good luck!!!

I agree Daisy...a real estate attorney might be a way to go too. It's a very unique situation.

Also, if there is an open adversarial action on this debt, it still doesn't change the automatic stay...the creditor wouldn't be allowed to do any collection attempts, including getting a lien or repossessing in any way, shape or form...Only way I can see them getting away with it is if they won the adversarial proceedings and the debt survived the BK with the BK being closed.

I would say that this particular situation is above what anyone on this forum would be able to help you with...All we can say is what we think will happen...you definitely NEED an attorney.

Good news though: if they violated the BK court order, then it's an open and shut case for you to file a suit against them for damages. I think a BK lawyer is still the way to go...if the debt is truly discharged with no lien on any properties, then the creditor doesn't have any legal standing to do any collection activities, including repossession or filing for liens. The BK law is very clear: the debt is discharged and all collection activities must cease.

Basically, if the debt is discharged and you have no liens from this creditor, then the creditor has no way to repossess. Filing for a lien would be a violation of the permanent injunction issued by the BK court with your discharge...and could land them in a lot of hot water. But that is just my theory...If you want to be certain, i'd suggest paying for an hour of an attorney's time and ask him yourself.

[007nco]

Also, 007, if your bk is discharged but not closed, and this particular debt has been the subject of adversarial action by the creditor, how is it that THIS debt has also been discharged? I thought that if there's a creditor objection that debt remains undischarged until the specific objection is settled. I could be very wrong, it just seems unusual. You might want to check that out. Good luck!!!

The creditor missed filing in time for last date for objections. Their debt is discharged by the BK court. Their adversary proceeding was also dismissed. I think the atty for the creditor is grasping at straws, but I guess the adage, no mail is good mail at this point. I'll retain an atty if more comes through, I gotta feel the door is closed for them.
EDIT: Maybe I am to get more paperwork fro the court, but today I did get the actual discharge paper. It simply says that " The debtor is granted a discharge.." On the back it lists what debts are not discharged. ie. student loans, reaff's etc, .. or any debts that the court decides are not discharged" I have received no notice of any of that though. Thanks all for the advice, appreciated!

[HHM]

Keep in mind, that only dismisses the BK part of this problem...if the creditor has a lien, liens survive BK. So, if this creditor thinks he has a lien, you will probably have future problems with this creditor. As was suggested above, you may need to get a real estate attorney or a construction attorney and file a motion to quash the lien at your county court.

[FreshLikeADaisy]

The creditor missed filing in time for last date for objections. Their debt is discharged by the BK court. Their adversary proceeding was also dismissed. I think the atty for the creditor is grasping at straws, but I guess the adage, no mail is good mail at this point. I'll retain an atty if more comes through, I gotta feel the door is closed for them.
EDIT: Maybe I am to get more paperwork fro the court, but today I did get the actual discharge paper. It simply says that " The debtor is granted a discharge.." On the back it lists what debts are not discharged. ie. student loans, reaff's etc, .. or any debts that the court decides are not discharged" I have received no notice of any of that though. Thanks all for the advice, appreciated!

Oh, I see now. Thanks for the clarification. I agree with you that he's very probably out of luck and the door has closed, but like HHM said, if he THINKS he has a lien (or any other options) you'll still have problems. But technically, I don't think he has a leg to stand on. Snoozing on the time allowed for objections was his worst mistake. From everything you wrote it's almost as if he's more haphazard and lazily vindictive than actually interested in settling the issue: I've met people like that but never understood them, to be honest. Fortunately for you, it won't go on forever if you address it now with the right atty. Good luck to you!!!

P.S. If you had a debt that was NOT discharged, you'd know it. If you've received no notices of that kind, or word from your attorney or trustee to the contrary, it's safe to say all your dischargeable debt was discharged. Yaaaaaaay!!!

[007nco]

Just a followup should someone else find the same situation. The BK court did grant a relied from stay for this creditor as they claim it is a secured debt. They have the ability to either attempt repo or to proceed with previously initiated forclosure litigation (but not seek to enforce any judgement Movant may obtain against the debtor personally or the debtor's post petition property)

[HHM]

Just a followup should someone else find the same situation. The BK court did grant a relied from stay for this creditor as they claim it is a secured debt. They have the ability to either attempt repo or to proceed with previously initiated forclosure litigation (but not seek to enforce any judgement Movant may obtain against the debtor personally or the debtor's post petition property)

Well, that sucks. About all you can do at this point is file a complaint in state court to attempt to quash the lien.