Are 522(f) Orders Valid After a Dismissal of a Chapter 13 Case?
Posted: Thu Sep 28, 2017 11:55 am
I believe the lien is an avoided transfer, which is reinstated upon dismissal.
Law Office of Eric Alan Mitnick
21515 Hawthorne Boulevard, Ste. 1080
Torrance, CA 90503
(310) 792-5864 (tel)
(310) 347-4353 (fax)
MitnickLaw@aol.com
Sent from my iPhone
> On Sep 28, 2017, at 11:43 AM, 'Frank X. Ruggier' frank@ruggierlaw.com [cdcbaa] wrote:
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> I admit that I havent done much research on this, but in my reading of Section 349(b)(1)(B) it talks about any transfer avoided under section 522 It does not talk about liens avoided under 522. I believe that 349(b)(1)(B) is referring to section 522(h) (where debtor has trustees normal avoiding powers when debtor can exempt and trustee does not avoid). So I am not so sure in reading the plain language of Section 349(b)(1)(B), that a 522(f) order is voided. Of course, there may be cases that I didnt find in my quick research that interprets 349(b)(1)(B) differently.
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> It is also interesting that if my reading is incorrect and 349(b)(1)(B) does reinstate a voided lien under 522(f), that this is based on dismissal of case and not failure to obtain a discharge, so if case was closed without a discharge, arguably the lien would NOT be reinstated. Of course, as a practical matter since there is no discharge, creditor could record a new lien.
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> Frank X. Ruggier, Esq.
> Certified Bankruptcy Specialist *
> 15545 Devonshire Street., Suite 110
> Mission Hills, CA 91345
> Tel: (818) 796-3529
> Fax: (818) 561-3909
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> * certified by the State Bar of California Board of Legal Specialization
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> Sent: Wednesday, September 27, 2017 4:05 PM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Are 522(f) Orders Valid After a Dismissal of a Chapter 13 Case?
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> See Section 349(b)(1)(B).
> Law Office of Eric Alan Mitnick
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> 21515 Hawthorne Boulevard, Ste. 1080
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> Torrance, CA 90503
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> (310) 792-5864 (tel)
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> (310) 347-4353 (fax)
>
> MitnickLaw@aol.com
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> Sent from my iPhone
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> On Sep 27, 2017, at 2:55 PM, 'Steven B. Lever' sblever@leverlaw.com [cdcbaa] wrote:
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> Hello back,
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> The 522(f) order is still good.
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> However, since there was no discharge and there is no automatic stay, they can simply refile the abstract of judgment and that one will be good.
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> Steve Lever
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> Sent: Wednesday, September 27, 2017 2:37 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Are 522(f) Orders Valid After a Dismissal of a Chapter 13 Case?
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> Hi Everyone,
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> My client's chapter 13 case was just dismissed. I avoided [via 522(f)] two liens against the debtor's house.
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> Are these orders valid even though the case was dismissed?
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> Thanks!
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