Full question:
Last year I declared bankruptcy and got divorced. My divorce was discharged first then my bankruptcy. There is currently a lien on the home I gave up any rights to in my divorce. My ex is trying to re-finance and he can't because of the lien. I have asked my bankruptcy lawyer for help and they claim that at the time of the bankruptcy 'I was entitled to either a cash exemption or a homestead exemption'. They have not been very helpful and I am wondering if this is something I can take care of myself with the courts and what certain forms I would need to file.
- Category: Bankruptcy
- Date:
- State: New York
Answer:
The answer depends on the terms of your divorce decree. Typically, a judge assigns debts in the final property settlement. It's unclear who is responsible for the debt creating the lien. If the debt was assigned solely to you, it may have been discharged in bankruptcy or qualified for an exemption.
If you choose to pay off the lien, you can file a release of lien form in the land recorder's office to remove it. I cannot determine if an error occurred in the bankruptcy that would justify an appeal. I recommend consulting a local attorney to review your documents and facts.
When filing for bankruptcy, you must complete several forms, including Schedule C, where you list property you claim as exempt. Both federal and state laws allow exemptions for certain property. The specific exemptions vary by state. In New York, for example, certain real property is exempt from seizure to satisfy money judgments, including a homestead exemption for property valued up to fifty thousand dollars (N.Y. Debtor & Creditor Law § 5206).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.