Secured Creditors Beware: Ninth Circuit Holds a Chapter 13 Debtor may Avoid Liens Even if not Entitled to a Discharge
The Creditors Rights
MARCH 15, 2016
Congress enacted § 1328(f) of the Bankruptcy Code when its passed BAPCPA. The creditor in Blendheim was HSBC Bank, which held a deed of trust lien on the debtors’ home. For some unknown reason, HSBC never responded to the debtors’ objection, and the bankruptcy court entered an order disallowing HSBC’s secured claim.
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