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Beneficial Consumer Discount Co. v. Erb (In re Erb)

Beneficial Consumer Discount Co. v. Erb (In re Erb)

Ruling
Debtors could not strip off second mortgage where court's analysis showed equity in the subject property.
Procedural posture

A creditor, the holder of a second mortgage against the debtors' residence, objected to the Chapter 13 plan filed by the debtors. In their second amended plan, the debtors proposed to strip off the creditor's mortgage under 11 U.S.C.S. § 506(a). The creditor objected to this treatment of its claim, alleging that it violated the anti-modification clause of 11 U.S.C.S. § 1322(b)(2).

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Consumer opinion summary, case decided on June 29, 2011 , LexisNexis #0811-064