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From the Editor – Eligibility
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By The Honorable William Houston Brown (Retired)
Debts for which in personam liability was discharged in prior Chapter 7 are not counted in unsecured limit for Chapter 13 eligibility. The debtors received Chapter 7 discharge and then filed for Chapter 13, with the intention of stripping off two junior liens on their residence. The Bankruptcy Appellate Panel found In re Shenas, 2011 WL 3236182 (Bankr. N.D. Cal. 2011), persuasive, holding that debts that had been discharged in the prior Chapter 7 and on which the debtors had no in personam . . .
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