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Is Your Bankruptcy Lawyer Representing You Correctly?

On Behalf of | Feb 6, 2018 | Bankruptcy |

Is your bankruptcy lawyer working in your best interests? Unfortunately, there are a lot of attorneys who file bankruptcy petitions for their clients, but many of them overlook issues that come back to haunt their clients.  A typical case is the failure to check for judgment liens.

Assume that you filed for bankruptcy because your wages were being garnishment after a judgment was taken against you.  You are also buying your home and have been regular in your payments.   The bankruptcy filing stops the wage garnishment, but your attorney did not check to see if the creditor filed its judgment.If the judgment was filed for record, it creates a judgment lien on your property.   In most cases, the bankruptcy filing will not discharge the lien.  Your attorney must take affirmative steps by filing papers in the bankruptcy court to discharge the lien.  Ten years later you have paid off your mortgage and you have received a release of mortgage from your lender.  Unfortunately for you, the creditor holding the judgment lien files suit seeking to foreclose on your home, all because your attorney overlooked checking to see if the lien has been filed.  In too many cases, the debtor has had to refinance his or her home to pay off the lien.  In Illinois, the interest rate on the lien is a hefty 9%.

If you are presently in a bankruptcy and you own real estate, make sure that your attorney has checked for lien filings.  There are pleadings that can be filed to avoid those liens, but the onus is on the debtor.   The lien will not be automatically discharged.

If this post has raised a concern for you and you need to have some questions answered, give us a call.

Southern Illinois Bankruptcy Attorney law firm Bankruptcy Advocates is located in Carbondale and serves a wide geographic community. The first consultation is always free. Give us a call at 618-549-9800 or email us at [email protected]  to speak about your case or legal matter. Convenient appointment times are available.