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Lien avoidance
I think of the liens in LIFO format. Last in, first out. Every judge should
conduct an evidentiary hearing when there is a dispute during a lien strip
because how else do you know where the cut off point is for lien stripping?
Just take one sides word? Maybe the property is worth 8 million.
If you really believe the property is worth 1 million with 5 million+ in
liens on top some of which cannot be stripped using 522(f), why wouldn't
you convert the case to Chapter 11 and strip 5 million more in liens?
522(f) is great, it works in Chapter 7s but 506 is pretty good too! 506
does not care about the timing issue, it's a stripping machine.
Sincerely,
Michael Avanesian
Law Offices of David A. Tilem
www.tilemlaw.com
818-507-6000
On Tue, May 27, 2014 at 5:52 PM, havkinlaw@earthlink.net [cdcbaa] wrote:
>
>
> My debtor's property has five unavoidable liens because they were recorded
> prior to the acquisition of the property. In addition, there are 8
> avoidable liens with the sum of approximately $6 million dollars. I filed
> a motion to avoid the lien of the loudest creditor. Before, the loudest
> creditor gets one dollar, the property would have to be worth over $6
> Million dollars. It is worth maybe $1,000,000. The judge wants to conduct
> an evidentiary hearing on value. I am confused. When you seek to avoid a
> lien, do you consider the avoidable liens as effectively gone or do you
> consider them as staying in place? Because, technically, the debtor does
> not have to avoid the other liens.
>
>
> Stella
>
>
>
I think of the liens in LIFO format. Last in, first out. Every judge should conduct an evidentiary hearing when there is a dispute during a lien strip because how else do you know where the cut off point is for lien stripping? Just take one sides word? Maybe the property is worth 8 million.
If you really believe the property is worth 1 million with 5 million+ in liens on top some of which cannot be stripped using 522(f), why wouldn't you convert the case to Chapter 11 and strip 5 million more in liens? 522(f) is great, it works in Chapter 7s but 506 is pretty good too! 506 does not care about the timing issue, it's a stripping machine.Sincerely, Michael AvanesianLaw Offices of David A. Tilemwww.tilemlaw.com
818-507-6000
On Tue, May 27, 2014 at 5:52 PM, <cdcbaa@yahoogroups.com> wrote:
My debtor's property has five unavoidable liens because they were recorded prior to the acquisition of the property.y $6 million dollars. I filed a motion to avoid the lien of the loudest creditor. Before, the loudest creditor gets one dollar, the property would have to be worth over $6 Million dollars. It is worth maybe $1,000,000. The judge wants to conduct an evidentiary hearing on value.ing in place? Because, technically, the debtor does not have to avoid the other liens.
Stella
The post was migrated from Yahoo.
Actually, the statute at subsection (a)(2) states in part "value" means fair market value as of the date of the filing of the petition...
Sent: Thursday, April 21, 2005 1:05 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Lien Avoidance
For purposes of a motion to avoid lien, what is the 9th circuit case
which provides that the value of the property is determined from the
date the petition was filed. The case I am relying upon is In Re Chiu,
266 B.R. 743 (9th Cir. BAP 2001). Is there a more recent or better
case?
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The post was migrated from Yahoo.
For purposes of a motion to avoid lien, what is the 9th circuit case
which provides that the value of the property is determined from the
date the petition was filed. The case I am relying upon is In Re Chiu,
266 B.R. 743 (9th Cir. BAP 2001). Is there a more recent or better
case?
The post was migrated from Yahoo.