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. HSBC timely filed a secured proof of claim based on its deed of trust against the debtors’ residence. For some unknown reason, HSBC never responded to the debtors’ objection, and the bankruptcy court entered an order disallowing HSBC’s secured claim. Congress enacted § 1328(f) of the Bankruptcy Code when its passed BAPCPA.