From the Editor – Lien Stripping • NACTT Academy

From the Editor – Lien Stripping

By The Honorable William Houston Brown (Retired)

Sixth Circuit BAP allows lien stripping in Chapter 20. A debtor who was ineligible for discharge because of a prior Chapter 7 discharge within four years was not prevented from stripping a wholly unsecured junior mortgage in the plan. The confirmed plan contained a provision for “avoiding” that mortgage, but the bankruptcy court denied the debtor’s postconfirmation motion to avoid based on §§ 1325(a)(5) and 1328(f). The bankruptcy appellate panel reviewed the split of authority and followed the “growing consensus of courts” that inability to receive . . .

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