Unperfected lien in Texas bankruptcy

In April I filed a chapter 7 bankruptcy for a client who had signed a settlement agreement in Jan. In the agreement, he gave permission for a lien to be placed on his Texas home for the amount of the settlement ($72,000). Lien was never perfected (recorded on the land records), so I listed the $72,000 as unsecured debt. House is underwater (mortgage $3000,000, value $250,000)…but claimed an exemption for $1.00 just in case there was any equity at all. Two weeks after filing, attorney for the other parties to the agreement recorded a lien in debtor’s house. I called the attorney’s office to inform him of violation of automatic stay…and he never returned my call. He showed up at the Dallas 341 meeting where I informed him that he could not perfect the lien – he had violated the automatic stay and the lien needed to be released immediately. He said that he was not a Texas bankruptcy attorney and had only done 5 minutes of research prior to filing the lien. Might have to do an A/P to determine the validity of the lien. Should be a slam dunk. I would get a copy of that 341 hearing tape. That’s like gold. I think you have given him sufficient warning. I would file an AP for contempt for violating the automatic stay and then in your relief ask that the lien be declared null and void as against the debtor’s property. Then I would also ask for damages, including attorneys fees and costs.

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