In a recent Chapter 7 case, there was a question of what happens when a secured creditor (in this case the secured home lender) does not file a Proof of Claim in the case, or otherwise participate in any way in the case. In fact, in this particular case, the debtor (inaccurately) scheduled the lender’s claim as an unsecured claim, rather than a secured claim, and the lender did not object to the Schedules. The answer is that there is no obligation for a lender to file a proof of claim, attend any hearings, file any pleadings or otherwise participate in the case. Unless the debtor reaffirms the debt, the personal liability is still discharged in the Chapter 7 case and the lender’s lien on the home will remain in force after the case is over. In addition, the debtor’s mischaracterization of the debt as an unsecured debt, and the lender’s failure to object to that, does not mean that the lien goes away. There are certainly occasions when a creditor should object to the amount of the scheduled debt, but that usually happens when there will be a distribution to creditors in the case. If there is a reason the lien may be invalid, the burden is on the debtor to raise the issue in Court.