What to do if I filed a lien against a person who owed me money but afterward I received a letter from their lawyer that they had filed Chapter 7?

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What to do if I filed a lien against a person who owed me money but afterward I received a letter from their lawyer that they had filed Chapter 7?

I was told that although I was unaware of the filing, I am prohibited from pursuing this claim and was ordered to remove the judgement before I was sued in return by her. Must I remove this judgement and mark it as “dismissed as a matter of bankruptcy” with the credit bureaus and county I filed the lein in?

Asked on April 3, 2013 under Bankruptcy Law, Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Under federal bankruptcy laws if the debtor has filed a chapter 7 filing before you recorded your lien then you are prohibited from pursuing the matter for the time being. You first need to make sure of when the bankruptcy filing happened with respect to your lien filing in order to make a decision on the subject.


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