Chapter 20 Debtors Can “Strip Off” a Wholly Unsecured Junior Lien on Debtor’s Primary Residence—Regardless of Debtors’ Eligibility for Discharge

By Ansley Owens, Contributing Writer and Intern for The Academy (Nashville, TN)

“Chapter 20” debtors who filed for Chapter 7 bankruptcy and filed for Chapter 13 petition less than four years later can “strip off” wholly unsecured junior liens according to the United States Bankruptcy Appellate Panel of the Ninth Circuit.

In 2011, debtors Serge Michel and Lori Jean Boukatch (In re Boukatch, No. BAP AZ-14-1483, 2015 WL 4127158 (B.A.P. 9th Cir. July 9, 2015)) filed a Chapter 13 case valuing their residence in Phoenix, Arizona at $187,500. There were two . . .

It looks like you are not signed in or registered! This content is only available to members.

Or sign in below:

No Author Biography has been linked to this Article.

Chapter 13 Debtor Employment in the Marijuana Industry

Michael Gieseke

August 18, 2024

Bankruptcy Courts are beginning to get a whiff of the fringes of the marijuana industry. Namely, is it automatically bad faith for “Bud” to propose a plan when his income is derived from a perfectly legal (as far as the state is concerned) business? Attorney Gieseke brings Academy readers an up to date look at what courts are saying.

Members

An Open Thank You Letter to NACTT – Reflections from a New(er) Trustee: My First Two Years

March 7, 2021

By Dynele Schinker-Kuharich, Chapter 13 Standing Trustee (Canton, OH) I vividly remember getting the call that I was to be appointed as a Standing Chapter 13 Trustee (effective October 1, 2018). I was so honored, and humbled, and excited. At the time I was a panel Chapter 7 Trustee, but my heart had always been in Chapter 13. As corny...

Thoughts on the Law: “None of My Business” Or “CU Later”? – Does Refusing to Do Business with a Debtor Violate the Automatic Stay?

February 9, 2020

By The Honorable John P. Gustafson Can a creditor refuse to do business with a debtor, or is such refusal a violation of the automatic stay? The case of Brown v. Penn State Employees Credit Union, 851 F.2d 81 (3rd Cir. 1988) held that a credit union’s refusal to continue to do business with a debtor who caused a loss...

Members

Supreme Court to Consider Judicial Estoppel

M. Jonathan Hayes

November 9, 2025

Last month, the Supreme Court granted cert agreeing to consider the issue of judicial estoppel arising in a Chapter 13 case.

Members

From the Editor – Debtor’s Attorney

May 17, 2020

By The Honorable William Houston Brown (Retired) Sanctions for including foreclosed property in petition. On creditor’s motion, sanctions for attorney fees and costs were awarded against Chapter 13 debtor’s attorney for scheduling as property of estate real property that had been foreclosed and on which debtor’s redemption period had expired. Under Rule 9011(c), a safe harbor letter from the creditor...

Members

Sixth Circuit Decides Tax Foreclosure Was Preferential Transfer

The Academy

June 7, 2026

Come to NACTT in New York City for discussion of this opinion and other tax sale issues.

Members

Overly Rigid and Broad

Henry E. Hildebrand, III

June 21, 2026

Keathley should now be added to your list of important Supreme Court cases. Be sure to take a look at the concurring opinions. See also: Supreme Court Gets Judicial Estoppel Right, at Least More Right

Members

In re Lazaro: Non-Monetary Default and § 1322(b)(5)

James M. Davis

June 4, 2023

Can a debtor provide for a non-debtor’s loan under § 1322(b)(5) even if the plan does not address a non-monetary default on the claim? In re Lazaro suggests the answer may be “yes.” In that case, the Court held not only that the Debtor’s plan could provide to cure a monetary default on a loan taken out by the Debtor’s...

Members

Laudable, Shortsighted, and Vague: The CDC’s Eviction Moratorium

October 18, 2020

By Riley F. Tunnell, Esq., Godwin Bowman PC (Dallas, TX) The COVID-19 pandemic is not the product of a single cause. So, our remedial efforts must address a myriad of causes and rapidly developing effects. The CDC believes that delaying the onset of the mass-eviction to a time when we may be better able to manage this virus is a...

Members

Critical Case Comment – No POC, No Money

Henry E. Hildebrand, III

April 30, 2023

A secured creditor would not be granted relief from the stay because the motion was based on the creditor’s failure to file a timely proof of claim. (Grant) In re Flores, 2023 WL 2787514 (Bankr. N.D. Ind. March 8, 2023) Case Summary Mr. Flores filed a petition under Chapter 13 proposing to pay Gaeta Auto Sales in full, with interest,via...

Members

Chapter 20 Debtors Can “Strip Off” a Wholly Unsecured Junior Lien on Debtor’s Primary Residence—Regardless of Debtors’ Eligibility for Discharge

Link to Post:

It looks like you are not signed in or registered! This content is only available to members.

Or sign in below:

Related Articles

Chapter 13 Debtor Employment in the Marijuana Industry

An Open Thank You Letter to NACTT – Reflections from a New(er) Trustee: My First Two Years

Thoughts on the Law: “None of My Business” Or “CU Later”? – Does Refusing to Do Business with a Debtor Violate the Automatic Stay?

Supreme Court to Consider Judicial Estoppel

From the Editor – Debtor’s Attorney

Sixth Circuit Decides Tax Foreclosure Was Preferential Transfer

Overly Rigid and Broad

In re Lazaro: Non-Monetary Default and § 1322(b)(5)

Laudable, Shortsighted, and Vague: The CDC’s Eviction Moratorium

Critical Case Comment – No POC, No Money

Academy

Members

Website

Legal

Looking to Become a Member?

Webinars

Member Articles

Industry News

To get started, please let us know which of these best fits your current position: