Navigating Secured Creditors Who File Unsecured Chapter 13 Claims

By Eric K. Fox, Esq. (Hendersonville, TN)

Jane Debtor has a home with a mortgage. An unsecured creditor obtains a judgment against Jane for, say, a credit card debt. Creditor’s attorney records a certified copy of the judgement order with the county register of deeds, thereby converting the unsecured claim against Jane in personam, to a secured claim against her personally and her real property in rem.

Debtor then files a Chapter 13 plan which provides for all her debt, including the secured judgement lien claim. The plan provides that after . . .

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