Does Chapter 7 Bankruptcy discharges lien hold?

Question

I went to collections for 3,000 credit card had a lien Hold on my Car registration and now I cannot renew after a few months. I declared Chapter 7 Bankruptcy and got the discharge. I called the collections company and they told me that the lien hold will stay because I got it before I declared chapter 7. Please Help.. Will like more insight on this.

6 months ago - 2 answers

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The collection agency is correct. The below is from two different references, sites listed below. Will a bankruptcy remove a lien? As a general rule, a bankruptcy will not remove a lien. If the lien is a non-judicial, non-possessory, non-purchase money security interest in household goods that are otherwise exempt, a lien avoidance may be filed with the court and the lien may be avoided. This is a very limited remedy. A bankruptcy will not eliminate a lien on a car or house or a lien on personal property that is subject to a purchase money security interest. www ... Although a debtor is not personally liable for discharged debts, a valid lien (i.e., a charge upon specific property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover the property secured by the lien. www ...

by Dixie Darlin'

6 months ago

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