By The Honorable William Houston Brown (Retired)
Application of Taggart to lien avoidance. When the Chapter 13 confirmed plan bifurcated the secured creditor’s claim and the secured portion had been paid in full with interest, the completion of payments voided any lien, and the creditor violated the discharge injunction by commencing foreclosure. The Panel found the plan’s language, although “inartful,” to mean that payment in full of the secured portion would eliminate the lien, with no separate procedural requirement for lien avoidance. Prior Ninth Circuit authority on a creditor’s good-faith . . .
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