Mortgage, BK, Writ of Execution

[dgilson]

The main reason we filled bk was because Zions Bank got a $47,000 judgment against my wife and I in Feb. 2007 for some old business debt. They filled a writ of execution in Sep. that would have allowed them to sell our house in Nov. We were under the impression that the court would take the house eventually so we stopped making payments. The court did not take the house and approved a motion to avoid Zions lien to the extent that it would impair our $40,000 homestead exemption. We may be able to do some improvements to the home and sell it for enough to pay Zions in full and get quite a bit more than just the $40,000. Our mortgage company just filed a notice of default (Feb. 28) but I can borrow enough money from my parents to reinstate the loan. My question is; does the bk discharge eliminate the writ of execution and allow us to keep the home until we are ready to sell? The court did not set a timeline for us to sell the house, the order just stated that upon its sale Zions gets their money if there is enough equity. We would get the $40,000 plus any amounts left after paying off Zions lien.