From time to time we get calls from people who have already filed a bankruptcy case, usually a Chapter 7 case, that the bankruptcy court has closed.
For one reason or another, they want to know if the case can be reopened. Sometimes it’s because they have forgotten to file the certificate of completion for their required financial management class. Other times it’s because they didn’t realize that a creditor had placed a judgment lien against their home. Usually they are in the process of selling or refinancing their home and the title company discovers the lien. They want to know if they can reopen their case and get rid of the lien.
Fortunately, section 350(b) of the Bankruptcy Code allows the court to reopen a case to ” to administer assets, to accord relief to the debtor, or for other cause.” What this means is that, yes, you can ask the court to reopen your case in some instances, including removing a lien that you or your attorney missed during the course of your bankruptcy.
You or your attorney will have to file a motion to ask the court to reopen your case. Assuming the court grants your motion, which it should, you’ll then be able to seek the relief you need, i.e. ask the court to remove the judgment lien.
If you haven’t yet filed your bankruptcy, you should know that a thorough bankruptcy lawyer will do a title search to see if there are any liens against your property and make sure to take care of it while your case is open.
If you have questions about a previous bankruptcy, we hope you’ll contact us to see if we can help. You can call 303.331.3403 to talk to an experienced Colorado bankruptcy attorney.