REAL ESTATE & BANKRUPTCY (Lien Stripping)

REAL ESTATE & BANKRUPTCY (Lien Stripping)

Where debtor received discharge of unsecured junior mortgage in Chapter 7 proceeding, and then filed a Chapter 13, the Court held that the junior mortgage was an unsecured debt, but not uncollectible, and the debtor should be required to make affordable payments on that unsecured debt as part of the debtor’s Chapter 13 plan.[The property was not foreclosed.]
There is no lien stripping (particularly of undersecured or unsecured junior mortgages) in Chapter 7 bankruptcy.

In re Leonidas, Case No. 6:17-bk-19739;(Memorandum Opinion), filed 6/19/2019

Call Now ButtonCall Now

Pin It on Pinterest