Lien Avoidance, Pre-Existing Liens and Notice

“Can a Debtor avoid a lien when a creditor holds a secured position that preceded the Debtor’s ownership interest . . . ? Judge Michelle Harner, . . . recently addressed this issue.

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Robert G. Drummond

Chapter 13 Standing Trustee for the District of Montana

Robert G. Drummond has been the only standing Chapter 13 Trustee for the District of Montana since 1992. Mr. Drummond has been a member of the American Bankruptcy Institute since 1987, and a member of the National Association of Chapter 13 Trustees since 1992. He is a past President of the National Association of Chapter 13 Trustees and has twice chaired the Montana Bankruptcy Section. He has published numerous articles dealing with Chapter 13 bankruptcy in several national publications. He is the publisher of the Montana Bankruptcy Reporter located at www.montanabankruptcyreporter.com.

Senior Headaches Caused by Junior Liens: Lien Stripping Under § 522(f)

Arya Omshehe, The Honorable John P. Gustafson

October 13, 2024

“In evaluating lien avoidance, we often default to the most common scenario: a first mortgage, perhaps a second mortgage, and the debtor’s homestead exemption. The question then becomes, is the total of these obligations more than the value of the property? If so, the judicial liens are avoided. If not, the judicial liens are either partially avoidable or fully secured.But that’s not quite how it works.” What a treat!!!! With no tricks. Judge Gustafson and Law Clerk Omshehe bring subscribers an in-depth look at the sexy topic of stripping.

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Tenancy by the Entireties and the § 522(f) Calculation

James M. Davis

February 25, 2024

“Over the years courts have struggled to apply the lien-avoidance provisions under § 522(f) to jointly owned property. . . .Things get even more confusing when the debtor owns property as a tenancy by the entireties. That antiquated form of ownership has odd characteristics that do not fit well into the § 522(f) calculation.”

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