Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Help Lien Strip - Days (or less) away from Discharge...

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Help Lien Strip - Days (or less) away from Discharge...

    Hi Folks!

    I am finally on the verge of a discharge. All my attorney needs to do is submit the DSO forms we gave him back in January. I hounded the trustee's office and they updated my case and notified the court of completed plan payments last Monday. Once I saw that on PACER I reached out to my attorney. He basically said that he wanted to make sure that the court order (AP) that stripped the 2nd mortgage would not be a problem with the title company in the event that we refinance or or sell and that he was waiting to hear back from the title company...that was Wednesday and I followed up on Friday.

    Today he indicated that he doesn't have a complete answer and that regardless the title company will want a release from the lender. He says he can go ahead and close it out and we would get the discharge by Wednesday, but that he may need to re-open the case in the future to modify the Order if necessary. But, that it would be better for the chapter 13 to remain open in case he needs to modify the court order so that it is acceptable to a title company and that he feels that makes more sense than discharging/closing the case and then chasing after the bank.

    I feel the opposite is true. I'd rather get my discharge now, wait to see what the bank will do. If they don't release it, I'm more than willing to go to the court and get certified copies of the complaint and order and take it to the bank if I need to. The lien strip doesn't happen unless the case is discharged, per the order so why would we postpone the discharge and risk the court closing out the case without a discharge???

    Anyone have any suggestion or experience??

    Thanks!!
    Filed Chapter 13 with lien strip on 2-28-11 * 341 held on 3-30-11 * First confirmation hearing held 4-20-11, continued until 5-25-11, continued until 6-29-11, continued until 8-10-11. Plan finally confirmed on 8-10-11!!!

  • #2
    A discharge is completely different than closing. Closing is administrative. You can have the discharge entered and the case remaining open in order to deal with administrative issues.

    The deal with lien strips is always quite interesting. Some lenders comply and immediately issue and record a Satisfaction of Mortgage or the required release of lien with the recorder of deeds. Others need to be prodded, while others must be dragged back into the bankruptcy court to explain why they haven't released the lien.

    I hope that your attorney meant that they would ask for the discharge to be issued, but the case to be held open (not closed) pending the creditor complying with the lien strip order. In some cases, the Court can issue a recordable document that would release the lien. You'll have to work with your attorney on the difference between discharge and close.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment


    • #3
      Perfect! I will run this by him. He is using discharge and closing interchangeably and I'm looking at another case in PACER that was discharged in August and not closed until October so you are right. I think he means well but he seems kind of clueless at times. I'll keep you all posted so we can have my discharge party!!! LOL!!!
      Filed Chapter 13 with lien strip on 2-28-11 * 341 held on 3-30-11 * First confirmation hearing held 4-20-11, continued until 5-25-11, continued until 6-29-11, continued until 8-10-11. Plan finally confirmed on 8-10-11!!!

      Comment


      • #4
        LOLLY78..... Please keep us updated on how it go's.

        We have a lien strip and have been discharged since 2/28/17 , Haven't heard a thing . I was going to give it some time before getting out my big stick.

        Anybody know how much time to give the 2nd ? Order said upon discharge.

        Comment


        • #5
          This is my dates, but YMMV:

          12/18/2016 - discharged from chap 13
          12/31/2016 - 2nd mortgage lender recorded a full reconveyance of title to us. Copy was sent by snail mail. American Securities Company was the trustee, WFB was the investor/2nd lender.
          01/06/2017 - judge voided the lien, aka lien strip (weird huh? court was behind by 7 days)
          02/24/2017 - judge released the trustee, and my case was finally closed.

          For the 2nd mortgage, WFB just hand over the deed before the judge stripped the lien, like they're eager to get rid of us.

          Mavric, just hang in there. I agree with justbroke that second lien stripping varies by lender.

          Comment


          • #6
            Originally posted by mavric View Post
            LOLLY78..... Please keep us updated on how it go's.

            We have a lien strip and have been discharged since 2/28/17 , Haven't heard a thing . I was going to give it some time before getting out my big stick.

            Anybody know how much time to give the 2nd ? Order said upon discharge.
            Keep bugging your attorney- I'm in California and was discharged 01/08/16. I recorded everything with the county clerk but the lien still shows on title. Im still researching but it looks like I'm going to have to hire an attorney to help me get the lien removed from title.😡
            Keep us posted!
            Last edited by Vmost66; 04-14-2017, 10:14 PM.

            Comment


            • #7
              Originally posted by Vmost66 View Post

              Keep bugging your attorney- I'm in California and was discharged 01/08/16. I recorded everything with the county clerk but the lien still shows on title. Im still researching but it looks like I'm going to have to hire an attorney to help me get the lien removed from title.😡
              Keep us posted!
              Did you record an order voiding lien? The lien itself will always show up in public records. What is important is having a reconveyance or order recorded so the lien is no longer effective.
              LadyInTheRed is in the black!
              Filed Chap 13 April 2010. Discharged May 2015.
              $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

              Comment


              • #8
                Originally posted by LadyInTheRed View Post

                Did you record an order voiding lien? The lien itself will always show up in public records. What is important is having a reconveyance or order recorded so the lien is no longer effective.
                I did not file an order voiding lien. All I filed was a certified copy of the "motion to avoid junior lien" along with the "order of discharge" as my attorney instructed.
                How do I file an order voiding lien?
                Im sure I would need to hire an attorney to do this.

                Comment


                • #9
                  Originally posted by Vmost66 View Post
                  I did not file an order voiding lien. All I filed was a certified copy of the "motion to avoid junior lien" along with the "order of discharge" as my attorney instructed.
                  How do I file an order voiding lien?
                  Im sure I would need to hire an attorney to do this.
                  After a few hours on the phone I was able to get through to Nationstar's bankruptcy department. They actually had my bk case#. They operator didn't know why the lien hadn't been removed but sent my information up the ladder. I will have to wait 5-7 business days to find out. My lawyer has failed to respond to my requests (typical). Hopefully Nationstar will come through for me. I will post the outcome.

                  Comment


                  • #10
                    Originally posted by Vmost66 View Post
                    I did not file an order voiding lien. All I filed was a certified copy of the "motion to avoid junior lien" along with the "order of discharge" as my attorney instructed.
                    How do I file an order voiding lien?
                    Im sure I would need to hire an attorney to do this.
                    The motion to avoid junior lien would not be sufficient, unless the discharge order states that the lien was voided. If the discharge order doesn't cover that, you would need to record the order that was entered in response to the motion to avoid junior lien. You would not need an attorney to record the order. You can get a certified copy of the order from the bankruptcy court and then record it with the county recorder. You may have to add a recording cover sheet. In my experience, county recorder staff are pretty helpful in telling you what you need to do to make a document recordable.

                    Originally posted by Vmost66 View Post
                    After a few hours on the phone I was able to get through to Nationstar's bankruptcy department. They actually had my bk case#. They operator didn't know why the lien hadn't been removed but sent my information up the ladder. I will have to wait 5-7 business days to find out. My lawyer has failed to respond to my requests (typical). Hopefully Nationstar will come through for me. I will post the outcome.
                    I bet they will. I got a certified copy of my order and was about to record it. For some reason, I decided to look at the recorder's records online before sending in the order. I saw that Wells Fargo had all ready recorded a reconveyance. So, I didn't need to record the order.
                    LadyInTheRed is in the black!
                    Filed Chap 13 April 2010. Discharged May 2015.
                    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                    Comment


                    • #11
                      Originally posted by LadyInTheRed View Post

                      The motion to avoid junior lien would not be sufficient, unless the discharge order states that the lien was voided. If the discharge order doesn't cover that, you would need to record the order that was entered in response to the motion to avoid junior lien. You would not need an attorney to record the order. You can get a certified copy of the order from the bankruptcy court and then record it with the county recorder. You may have to add a recording cover sheet. In my experience, county recorder staff are pretty helpful in telling you what you need to do to make a document recordable.



                      I bet they will. I got a certified copy of my order and was about to record it. For some reason, I decided to look at the recorder's records online before sending in the order. I saw that Wells Fargo had all ready recorded a reconveyance. So, I didn't need to record the order.
                      I'm keeping my fingers crossed! Hopefully a nudge is all they needed. The only thing I have received from Netstar was a 1099-C ( Discharge of Debt).

                      Comment


                      • #12
                        Had a similar situation here. My second mortgage was with CitiFinancial. A collection agency purchased the bad debt and was paid in our plan. But CitiFinancial ALSO tried to get their additional money from our personal loan that defaulted. A few years into the plan I received a letter from Citi stating that the loan was forgiven and as a gift they presented me with a 1099C (IRS CANCELLATION OF DEBT). Over $11,000 of the debt was cancelled however because I was still in the chapter 13, I had to call the IRS to get the low down on the tax implications while being insolvent.

                        Each Bankruptcy Court has a IRS UNIT that deals with these cases. My agent here in Nashville, pulled up my IRS Account and saw the 1099C then verified that I did not have to APPLY THE ADDITIONAL INCOME for this 2016 Tax year because the DEBT WAS FORGIVEN WHILE MY CH13 WAS STILL ACTIVE. If your case is closed, you more than likely wont have to pay either if the Judge STRIPPED THE LIEN from your MORTGAGE!

                        Good Luck and ROCK ON!

                        Comment


                        • #13
                          vmost66 will definitely not have to pay income tax on the debt discharged in BK. For more information go to http://www.bkforum.com/blogs/ladyint...ischarged-debt
                          LadyInTheRed is in the black!
                          Filed Chap 13 April 2010. Discharged May 2015.
                          $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                          Comment


                          • #14
                            Originally posted by LadyInTheRed View Post
                            vmost66 will definitely not have to pay income tax on the debt discharged in BK. For more information go to http://www.bkforum.com/blogs/ladyint...ischarged-debt
                            Correct! I didn't pay taxes on the 1099c. It would have been astronomical since it was $167k 🙄

                            Comment


                            • #15
                              Update......... Received letter from bank that held my 2nd, and we had a lien strip in ch 13 . Cancellation of security deed !!
                              Didn't know this but, they had 60 day's to release after being paid. Discharged 2/28/17 so we got it on day 60.
                              This was the last piece of my ch 13 WE ARE DONE!!! YAY

                              Comment

                              Unconfigured Ad Widget

                              Collapse
                              Working...
                              X