[WSBARP] Satisfaction of Note in Bankruptcy Action

[Mark Anderson]

Dear All:
I'm trying to clear title to piece of property encumbered by a deed of trust on which there are two named beneficiaries (individuals).  The single note secured by the deed of trust was paid off and one beneficiary signed the request for reconveyance. However, the other beneficiary has not signed a request for reconveyance and has "gone silent."
I am looking at proceeding under RCW 61.24.110.  However, I am thinking there may be a more expeditious way to clear title.  Consider the following additional details.
In 2015 Jennifer purchased a piece of real property from Kevin and Larry, who are unrelated to each other (no blood relation, different addresses, etc.).  Jennifer gave Kevin and Larry a promissory note for the purchase secured by a deed of trust in the property.  Payments were made through a loan servicing company.  Throughout this process, Jennifer dealt mostly with the loan servicing company and Kevin, but not Larry.
In 2020, Jennifer filed for Chapter 13 bankruptcy protection.  Jennifer listed Kevin as a creditor and Kevin made a secured claim in the bankruptcy action.  However, Jennifer did not list Larry as a creditor.  As such, Larry arguably did not receive notice of the bankruptcy action. Jennifer's Chapter 13 plan was approved, and she received a discharge of debt under Chapter 13.
In 2022, the promissory note was paid in full through the loan servicing company, and Kevin signed a request for reconveyance at the request of the loan servicing company.  However, despite repeated requests from the loan service company, Larry has not signed a request for reconveyance.
Typically, a Chapter 13 discharge does not discharge debts owed to creditors who are not listed.  I think this case may be different.  At the time Jennifer filed bankruptcy, Larry was a bona fide creditor along with Kevin.  Now that the loan has been paid off, it would seem that Larry is no longer a creditor.
Now the questions: Would completion of the Chapter 13 plan discharge the debt originally owed to both Kevin and Larry under the terms of the secured promissory note?  If so, how could I convince the Trustee to record a full reconveyance?
Thanks in advance.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock Street, Suite 209, PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20250714/69a1fad4/attachment.html>