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§ 506(d)

Briseno v. Mutual Fed. Sav. & Loan Assn (In re Briseno)

Ruling
Debtor could bifurcate first mortgages on two properties but could not strip off second mortgage securing allowed claim on one property.
Issue(s)
Could debtors strip off both first and second mortgages on two multi-family properties.

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Consumer opinion summary, case decided on August 02, 2013 , LexisNexis #0913-010

Palomar v. First Am. Bank

Ruling
Debtors could not reduce valid lien to value of property.
Procedural posture

The United States District Court for the Northern District of Illinois, Eastern Division, affirmed the dismissal of appellant homeowners' adversary action against appellee bank. The homeowners appealed.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on July 11, 2013 , LexisNexis #0813-012

Ryan v. United States (In re Ryan)

Ruling
Debtor not entitled to avoid unsecured portion of lien against possessions.
Procedural posture

The debtor appealed an order of the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, that refused to void the federal tax lien recorded against his possessions pursuant to 26 U.S.C.S. § 6323 to the extent the amount exceeded the total value of his possessions.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on July 08, 2013 , LexisNexis #0813-013

In re Kennedy

Ruling
Second lien stripped as first lien exceeded value of subject property.
Procedural posture

In this chapter 7 action, the debtor filed a motion to determine the secured status of claim no. 2 and to strip the lien effective upon discharge or closing of the estate. The creditor opposed the motion.

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Consumer opinion summary, case decided on June 27, 2013 , LexisNexis #0813-080

Hardwick v. Bank of Am. (In re Hardwick)

Ruling
Creditor's second line that was wholly unsecured was void.
Procedural posture

Chapter 13 debtor filed an adversary complaint against defendant creditor to determine the validity of the creditor's lien on the debtor's real property.

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Consumer opinion summary, case decided on June 21, 2013 , LexisNexis #0813-114

In re Aliu-Otokiti

Ruling
Wholly unsecured second lien could be stripped off.
Procedural posture

This matter came before the court on the chapter 7 debtor's verified motion to determine secured status and strip lien of a condominium association. An evidentiary hearing was held.

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Consumer opinion summary, case decided on March 19, 2013 , LexisNexis #0413-047

Williams v. IRS (In re Williams)

Ruling
Debtors could not strip off IRS lien on home that was also partially secured by personal property.
Procedural posture

Plaintiff chapter 7 debtors filed an adversary proceeding against defendant Internal Revenue Service ("IRS"), seeking a determination that they were allowed under 11 U.S.C.S. § 506(d) to strip off a lien the IRS held on their home. The parties filed cross-motions for summary judgment.

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Consumer opinion summary, case decided on March 15, 2013 , LexisNexis #0713-042

In re Bustamante

Ruling
Unsecured condominium association's lien could be stripped off.
Procedural posture

A chapter 7 debtor was indebted to creditor community association in the amount of $1,986.50. The debtor's homestead was a condominium. The debtor moved to strip the association's lien under 11 U.S.C.S. § 506. The association argued its subordinate lien should not be stripped, and it also moved for relief from the automatic stay to continue foreclosure proceedings it instituted pre-petition against the debtor's condominium.

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Consumer opinion summary, case decided on March 15, 2013 , LexisNexis #0413-080

In re Sultan Realty LLC

Ruling
Creditor's claim allowed inclusive of interest at post-default rates, costs and expenses.
Procedural posture

Debtor objected to a claim filed by movant creditor, the assignee of a first mortgage on debtor's property. When movant sought summary judgment on the issue of the allowability of its claim, the court considered whether movant's claim should be allowed and whether it properly included prepetition and postpetition interest at the 24% post-default rate and costs and expenses incurred by movant's assignor in prosecuting a foreclosure action.

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Commercial opinion summary, case decided on December 20, 2012 , LexisNexis #0113-044

Anderson v. Liberty Sav. Bank (In re Anderson)

Ruling
Second mortgage could be stripped off where first mortgage exceeded value of debtor's residence.
Procedural posture

Plaintiff chapter 13 debtor filed an adversary proceeding against defendant bank, seeking a determination that she was allowed to strip off a second mortgage lien the bank held on her residence. The debtor filed a motion for summary judgment on her claim.

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Consumer opinion summary, case decided on December 13, 2012 , LexisNexis #0113-045