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Ch 11: Effect of recent ch 7 discharge on fully unsecured junior
Listmates,
Debtor received chapter 7 discharge and subsequently filed a chapter 11
case. Debtor has a property where the amount of the first lien is greater
than the fair market value. Thus the junior lien is fully unsecured. Of
course the debt underlying this fully unsecured junior lien has been
discharged in the recent chapter 7 case.
Is the junior lien holder entitled to any payment in the chapter 11 plan
where the lien is fully unsecured and the underlying debt has been
discharged in a chapter 7 liquidation?
If the junior lien holder, in these circumstances is not entitled to
payment, is a lien strip motion required?
Alik Segal
Alik.Segal@gmail.com
310-362-6157
California Central District
Listmates,
Debtor received chapter 7
discharge and subsequently filed a chapter 11 case. Debtor has a property
where the amount of the first lien is greater than the fair market value.Thus the junior lien is fully unsecured. Of course the debt underlying
this fully unsecured junior lien has been discharged in the recent chapter 7
case.
Is the junior lien holder
entitled to any payment in the chapter 11 plan where the lien is fully
unsecured and the underlying debt has been discharged in a chapter 7
liquidation?
If the junior lien holder, in these circumstances is not entitled to payment, is a lien strip motion required?-- Alik SegalAlik.Segal@gmail.com
310-362-6157California Central District
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