Critical Case Comment – In re Zimmerli v. Ocwen Loan Servicing LLC, 2010 WL 268093 (Bankr. N.D. Tex. June 22, 2010) (Hale)

In re Zimmerli v. Ocwen Loan Servicing LLC, 2010 WL 268093 (Bankr. N.D. Tex. June 22, 2010) (Hale)

Whether an arbitration clause is to be enforced by a bankruptcy court depends upon whether arbitration would jeopardize the objectives of the Bankruptcy Code.

Summary of the Case

When the debtors filed their Chapter 13 plan, Household Bank held the mortgage on their home. This mortgage was subsequently transferred to Fairbanks Capital Bank and then transferred to Ocwen . . .

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