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From the Editor – Lien Stripping and Mortgage Modification
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By The Honorable William Houston Brown (Retired)
Chapter 20 debtor ineligible for discharge could strip junior lien. The Ninth Circuit held that discharge ineligibility did not prohibit the debtors from using the lien-avoidance tools available in Chapter 13. The panel first held that the creditor’s lien was properly voided under § 506(d), because the debtors objected to the creditor’s proof of claim and the creditor failed to respond to the objection. The claim was disallowed, with § 506(d) leaving the creditor with a claim that was not an allowed secured claim. The decisions . . .
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