[WSBARP] DOT Survived after BK

[Mike Zeno]

Hi Kevin-

The bankruptcy does not eliminate the deed of trust and the bankruptcy court would not eliminate the deed of trust if you asked it to.  The bankruptcy discharge turns the debt into non-recourse debt, but the debt is still there.
See Merritt v. USAA Fed, 1 Wn.3d 692 (2023).

However, if the debt is time barred-as it sometimes is in cases like this--you should be able to eliminate the deed of trust with a quiet title action.

Mike

The Law Office of G. Michael Zeno, Jr., P.S.
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Kevin Bukoskey
Sent: Wednesday, March 4, 2026 2:40 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] DOT Survived after BK

Hi Listmates,

I have a new client who owns a property and had a Note/DOT. During "The Great Recession", he claimed BK, included the loan, and never made any payments again and has not heard anything back from the lender either way.

Recently, he pulled a title report, and it seems that the DOT survived and was not stripped in the BK.

When this happens, from a title standpoint, would you expect a quiet title to remove the DOT, or is this something that has to be done via a court order in BK court?

Thanks.

Kevin A. Bukoskey, Esq., JD, MBA
Attorney
GOURLEY LAW GROUP
THE EXCHANGE CONNECTION
SNOHOMISH ESCROW
P.O. Box 1091
Snohomish, WA 98291
PH:  (360) 568-5065 (800) 291-8401
Fax: (360) 568-8092

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