By Ed Boltz, The Law Offices of John T. Orcutt, P.C. (Durham, NC) and Sarah Beth Withers, Inner Banks Legal Services (Washington, NC) DISCLAIMER: This article is not meant to provide specific advice about the formation of a 501(c)(3) non-profit corporation or the tax or other consequences of such. At most, this is intended to encourage Chapter 13 trustees and...
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By Wm. Houston Brown, United States Bankruptcy Judge (Retired)
Disallowance of proof of claim did not extinguish lien. The Chapter 13 trustee had objected to second mortgage holder’s proof of claim because the creditor’s name did not match the documents attached to claim, and with no response, the claim was disallowed. However, the confirmed plan treated the debt as long term with monthly payments. After entry of discharge, the servicer on the mortgage changed, and the former debtors argued that the lien was voided by claim disallowance. The district court . . .
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