Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee

In re Rosa, 2014 WL 6999380 (Bankr. N.D. Cal. December 10, 2014) (Novack)

A totally unsecured second mortgage, discharged in a prior Chapter 7 case, does not create an unsecured claim in a subsequent Chapter 13 even where the debtor is not entitled to a discharge.

Case Summary

Diana Rosa obtained a Chapter 7 discharge in January of 2012. Her home, valued at $350,000, was subject to a first mortgage in the amount of $701,802 and a second mortgage . . .

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