Collected Assets

[stressed07]

Today the bank came and got their assets for the business loan. Then I found out that in that loan they had a mortgage on our house with it for extra collateral that the equipment did not meet. We are discharged and final decree done so now what. They have a lien against my house for the total amount of the loan, $61,000. We reaffirmed our home in the bankruptcy. Someone please help. Also if we sell our house and we cannot pay all the liens off what happens then. Can they sue us becuase this loan was discharged in the bankruptcy. By the way this loan is my husbands I would have never done that.

[freshstart06]

I hope someone can help you with your questions but your case will need a lawyer's advice. From reading your post, you are embarrassed about the situation. Please don't be. We have done what we done either it was us alone, our spouse or the both. No one here is to judge you and you are not required to ever answer why you are in this situation or why you did something. Our goal is to help you through this tough time the best we can.


***Virtual Hug***

[Boscoe]

Wasn't the business loan discharged in the BK? If so, they can't come and get the assets, as there is an automatic stay in place.

You definitely need to see an attorney.

[HHM]

This is a tough situation...I WISH you had mentioned the issue about the house being additional collateral for the business loan in your other posts so we could have tried to address the issue.

First off, regarding Boscoe's statement. When it comes to secured debts, the debtor's "personal liability" for the debt is discharged, however the LIEN SURVIVES the BK. Also, in this particular instance, I believe Stressed07 was surrendering the business collateral anyway, correct?

The house is a problem, because just like any secured loan, the LIEN survives the BK; thus, their mortgage claim on your home is probably valid. The only caveat is that the security interest in the home is a "non-purchase money security interest", thus, I believe you are allowed to "strip" that lien to "current value" of the asset securing the loan.

IMHO, the lien is valid, but you need to speak with an attorney asap. You probably have some options. You CAN reopen your case to address the issue, and doing so is not that big a deal.