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Chapter 7 Bankruptcy dismissed all my debts, why then is there still a judgement lien on my house?

Chapter 7 Bankruptcy dismissed all my debts, then why is there still a judgement lien on my house from one of my creditors whose debt was dismissed in my bankruptcy, the lien was put on before my bankruptcy, should it still be there, and how can I remove it before my settlement date of my sale on 12/28/2007?

Liens do not magically disappear after a bankruptcy discharge (which I assume is what you mean rather than dismiss because a bankruptcy dismissal results in none of your debts being discharged which defeats the purpose of filing). You are no longer personally liable but they have a perfected lien on the house. You may be able to get it avoided, BUT talk to your bankruptcy attorney, because this is dependent on a few factors (value of the house, homestead exemption, and amount of equity available). Whether you can get it done by that date depends on your attorney and the bankruptcy court schedule between now and then.