[WSBARP] DOT Survived after BK

[Timothy Steen]

Kevin,

A bankruptcy generally does not discharge a valid deed of trust, absent avoidance or similar special proceedings in the bankruptcy.  If the debtor received a discharge, that eliminates the debtor's personal liability.  Meanwhile, the lender can still foreclose the trust lien to satisfy the indebtedness.  The client will likely have to handle the deed of trust as it would any other trust lien.

Thanks,

Tim

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Timothy E. Steen
Attorney | Anderson Hunter Law Firm
2707 Colby Avenue #1001 | Everett, WA  98201
P.  (425) 252-5161 | D.  (425) 303-3125 | F.  (425) 258-3345
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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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