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
The creditor in Blendheim was HSBC Bank, which held a deed of trust lien on the debtors’ home. The Ninth Circuit in In the Matter of Blendheim , 803 F.3d 3d 477 (9 th Cir. 2015) held a chapter 20 debtor may in his chapter 13 case avoid a lien under § 506(d) even if § 1328(f) precludes him from receiving a discharge. Timm , 502 U.S.
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