In two cases out of the Middle District of Florida, property associations fought for priority over mortgage lenders in order to prevent their liens from being stripped as wholly unsecured. In re Plummer, No. 12-3870 (Bankr. M.D. Fla. Jan. 14, 2013); In re Buckner, No. 12-4962 (Bankr. M.D. Fla. Jan. 17, 2013). The Associations failed to convince the court, however, and, in Plummer, the court permitted the lien stripping under section 1322(b)(1), while in Buckner, the lien was stripped under section 506(d). [Read more…] about Property Associations Lose Battle of the Liens in Two Florida Cases.
Chapter 20 Lien Stripping 8th Circuit
The issue of whether a debtor may strip a wholly unsecured lien in chapter 13 where discharge is unavailable is before the Eighth Circuit Court of Appeals in the case of Keller v. Fisette (In re Fisette), No. 11-3119, after debtor won before the bankruptcy appellate panel. The debtor argues in his brief, filed on December 8, 2011, that Nobelman v. American Sav. Bank, 508 U.S. 324 (1993), has been consistently and correctly interpreted by all the circuit courts addressing the issue to permit strip-off of wholly unsecured liens in chapter 13. Because BAPCPA permits chapter 13 cases even where discharge is unavailable debtors may avail themselves of all the benefits of a chapter 13 case with the exception of discharge upon completion of the case. One of those benefits is stripping of wholly unsecured liens pursuant to section 1322(b).
[Read more…] about Chapter 20 Lien Stripping 8th Circuit
Keller v. Fisette (In re Fisette), No. 11-3119 (8th Cir.)
Type: Debtor’s brief
Date: December 8, 2011
Description: Lien stripping of wholly unsecured lien in chapter 20.
Result: Dismissed for lack of jurisdiction. September 12, 2012
Woolsey v. Citibank, No. 11-4014 (10th Cir.)
Type: Amicus
Date: May 18, 2011
Description: Whether wholly unsecured lien may be stripped off in chapter 13 where court allowed modification but refused strip off.
Result: Judgment affirmed, September 4, 2012
In re Jones, No. 07-3256 (10th Cir.)
Type: Amicus
Date: December 3, 2007
Description: Whether 910 car creditor is entitled to interest on its claim under section 1325(a)(5) or whether debtor may bifurcate claim under section 1322.
Result: Vacated and remanded. Debtor lost.
Tanner v. Firstplus Financial, No. 99-11985 (11th Cir.)
Great American Financial v. Paschen, No. 01-16353 (11th Cir.)
In re McNeal, No. 10-1612 (N.D. Ga.)
Type: Amicus
Date: September 27, 2010
Description: Whether wholly unsecured residential lien may be stripped off in chapter 7.
Result: Affirmed. Debtor lost.
McNeal NACBA amicus ND Ga
In re Hoffman, No. 09-18839 (Bankr. M.D. Fla.)
Type: Amicus
Date: May 7, 2010
Description: Whether wholly unsecured residential lien may be stripped off in chapter 7.
Result: Debtor lost.
Hoffman Bankr MD Fla opinion
Fair v. GMAC, No. 10-1128 (E.D. Wisc.)
Type: Amicus
Date: February 18, 2011
Description: Lien strip in chapter 13 where no discharge available.
Result: Reversed and remanded. Debtor won.