In re Briseno; Briseno v. Mutual Federal Savings and Loan Association

12 B 02903, 12 A 00440, 12 A 00441
Pro se debtors commenced two adversary proceedings to determine the value of two pieces of real property and to strip down the unsecured portions of the first mortgage liens on those properties pursuant to §§ 506(a) and 1322(b)(2).  The debtors also filed a motion to strip off the creditor’s second mortgage lien from one of the properties under § 506(d).  Based on the evidence presented and the credibility of the witnesses who testified at trial, the Court valued each property and gave the debtors permission to file an amended plan consistent with the Court’s ruling stripping down the first mortgages.  As for the debtors’ motion to strip off the second mortgage lien under § 506(d), the Court denied the motion without prejudice, finding that the statute cited does not provide the vehicle for lien stripping in chapter 13 cases in the wake of the Seventh Circuit’s recent decision in Ryan

File: 
Date: 
Friday, August 2, 2013