Chapter 20 Debtors Can “Strip Off” a Wholly Unsecured Junior Lien on Debtor’s Primary Residence—Regardless of Debtors’ Eligibility for Discharge

By Ansley Owens, Contributing Writer and Intern for The Academy (Nashville, TN)

“Chapter 20” debtors who filed for Chapter 7 bankruptcy and filed for Chapter 13 petition less than four years later can “strip off” wholly unsecured junior liens according to the United States Bankruptcy Appellate Panel of the Ninth Circuit.

In 2011, debtors Serge Michel and Lori Jean Boukatch (In re Boukatch, No. BAP AZ-14-1483, 2015 WL 4127158 (B.A.P. 9th Cir. July 9, 2015)) filed a Chapter 13 case valuing their residence in Phoenix, Arizona at $187,500. There were two . . .

It looks like you are not signed in or registered! This content is only available to members.

Or Sign In Below:

No Author Biography has been linked to this Article.

Related Articles

August 22, 2021
By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) While the best interests of creditors test is applicable upon modification of a Chapter 13 plan, post-petition acquired property of the estate is not included in such analysis in that such property would not be property of a Chapter 7 estate. (Somers) In re Taylor, 2021 WL 3118824 (Bankr....
Members
July 25, 2021
By Merideth Akers, CPA, PHR, Comptroller forBradford W. Caraway (Birmingham, AL) I am a Certified Public Accountant (CPA) and a Professional in Human Resources (PHR). I suspect that many who read this article are Licensed Attorneys. Others may hold a certification from other professions. These entities have their own rules of professional ethics and conduct that govern what we are...
Members
March 20, 2022
“The trouble with retirement is that you never get a day off!” [Abe Lemons] There is no better way to describe Robert Wilson in his career as an attorney, as a trustee, in his life thus far, and surely in his retirement! He has filled and will continue to fill every second of every day with meaning and purpose and...
August 18, 2019
By Cathy Moran, Esq. (Redwood City, CA) My Google Alert popped up a lovely win for a Chapter 13 homeowner, but all I could see was the train wreck that lies ahead. The bankruptcy court ruled that the confirmed (and completed) plan trumped a late-filed mortgage proof of claim. Payment of the amount provided in the plan cured the prepetition...
Members
balboa
August 20, 2023
Wishing our dear friend and colleague, Isabel Balboa, a hearty congratulations on her upcoming retirement. As many of you know, Isabel came to the United States from Cuba at the age of 6 with her mother and sisters.  Upon leaving Cuba, they were forced to leave everything behind for fear that they would be caught and detained.  Her father was...
July 7, 2019
By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) Where a confirmation order of a debtor’s Chapter 12 plan specifically provided for payments to a creditor and the Chapter 12 trustee had supported confirmation of the plan, the trustee would be precluded from seeking to disallow a late-filed claim. Following the plan, the...
Members
September 8, 2019
By Angela M. Scolforo, Staff Attorney to Herbert L. Beskin, Chapter 13 Trustee (Charlottesville, VA) In Hurlburt v. Black,1 the en banc Fourth Circuit Court of Appeals overturned its prior decision in Witt,2 and held that Bankruptcy Code § 1322(c)(2) authorizes modification of some home mortgage loans through bifurcation and cram down. This enables debtors to cram down home mortgage...
Members
August 18, 2019
By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN) PART I Overview Introduction Four bankruptcy-related bills have been passed by both the House and the Senate this term. The legislation was sent to the President for signature on August 13, 2019.1 The bills were not controversial and had bipartisan support. The legislation affects both business and consumer cases. One...
Members
Copy of Hildebrand-2016
June 26, 2022
Even though the Model Plan in the district provides that the applicable commitment period starts from confirmation, the debtor may not apply pre-confirmation payments toward payments made during the applicable commitment period but must apply those payments in addition to the applicable commitment period payments. (Applebaum) In re Batoha, 2022 WL 1310943 (Bankr. E.D. Mich. May 2, 2022) Case Summary...
Members
January 13, 2019
By Kathryne M. Shaw,1 Boleman Law Firm, P.C. (Virginia Beach, VA) Click here for Part 2 The bankruptcy system requires good faith on the part of a debtor in exchange for the promise of a fresh start, and responsible members of the bankruptcy bar constantly work to ensure that no one “games” this powerful system. So, how does a debtor...
Members

Looking to Become a Member?

ConsiderChapter13.org offers a forum to advance continuing education of consumer bankruptcy via access to insightful articles, informative webinars, and the latest industry news. Join now to benefit from expert resources and stay informed.

Webinars

These informative sessions are led by industry experts and cover a range of consumer bankruptcy topics.

Member Articles

Written by industry experts, these articles provide in-depth analysis and practical guidance on consumer bankruptcy topics.

Industry News

The Academy is the go-to source for the latest news and analysis in the Chapter 13 bankruptcy industry.

To get started, please let us know which of these best fits your current position: