Unsecured creditor didn't file claim

[JoyD]

Before filing bankruptcy a creditor received a judgment on me and put a lien on any real property I had. After filing bankruptcy the creditor didn't file a claim so they are being paid $0. My question is what happens to the lien since the creditor isn't being paid? The creditor is unsecured. I appreciate any help with this.

[lrprn]

According to the Moran Law website at http://www.moranlaw.net/lienstripping.htm

"Liens can be stripped off of the debtor's assets in Chapter 11 or Chapter 13 when there is not enough equity in the asset, after deducting senior liens from the property's current market value, to secure the unsecured in whole or in part, where the lien exceeds the value of the debtor's property."

So it appears the answer to your question depends on the value of what the unsecured creditor's lien is attached to and what other liens were on the asset first - creditors would get paid in order they got their judgment against your asset and secured creditors would be paid before unsecured creditors if the asset was liquidated.

If you filed your Ch 13 case with a lawyer, what does he/she say about this?

[cso5@]

I'm in the same boat -- same question

Hello,
This is the situation I am in, too.

I had a personal loan that was included in the bankruptcy filing. They are listed on Schedule D as secured creditors.

But when you look at who has actually filed claims, from 13datacenter.com, they have not. They are not listed at all.

So 4+ years from now, when I am through this repayment plan, what happens to that lien that has been placed on my property?

Another lienholder did file a claim, and they are listed as unsecured nonpriority. I thought if they were listed on Sch D, they were priority claimants?

I haven't asked my attorney yet -- I will give him a call. He's great, his staff is great.

cso5