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Can a creditor place a lien on your home after bankruptcy dismissal?

Can a creditor place a lien on your home after bankruptcy dismissal?

Full question:

Can a credit card creditor file a lien on your home after bankruptcy dismissed the creditor and you have filed for homestead before the lien was placed?

Category: Civil Actions
Subcategory: Liens
Date: 04/07/2025
State: National

Answer:

It's unclear what you mean by the creditor being dismissed. If the debt was discharged in bankruptcy, a bankruptcy discharge releases you from liability for that debt. In Tennessee, a homestead exemption typically protects up to $550,000 in equity in your property. However, this exemption does not cover debts related to:

Purchasing the property
Improvements made to the property
Mechanic's liens lawfully obtained
Legal taxes
Mortgages or deeds of trust, including refinanced loans and home equity loans
Liens for which you consented through acceptance of property subject to recorded restrictions

Additionally, the homestead exemption does not apply to Medicaid debts.

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.

FAQs

Can debt collectors collect after bankruptcies?

Yes, debt collectors can attempt to collect on certain debts after bankruptcy, especially if the debt was not discharged. If a bankruptcy case is dismissed, creditors may pursue collection actions, as the discharge protection no longer applies. However, debts that were included in a bankruptcy filing and properly discharged cannot be collected. Always consult with a legal professional for specific advice regarding your situation.

Can a credit card collection agency put a lien on your home?

Yes, a credit card collection agency can potentially place a lien on your home if they obtain a judgment against you. However, if the debt was discharged in bankruptcy, they generally cannot pursue collection actions, including liens, on that debt. It's important to understand your rights and consult with an attorney if you face such a situation.

Do you still have to pay debt after bankruptcies?

It depends on the type of debt. Debts that are discharged in bankruptcy do not need to be paid. However, certain debts, such as student loans, child support, and some tax obligations, may not be discharged. If your bankruptcy case is dismissed, you may still be liable for all debts. Always review your specific circumstances with a legal expert.

Does bankruptcy wipe out liens?

Bankruptcy does not automatically wipe out liens. While it can discharge personal liability for certain debts, liens on property remain unless specifically addressed in the bankruptcy process. If a lien is attached to a property, the creditor may still have rights to that property even after bankruptcy. Consult with a bankruptcy attorney for guidance on handling liens.