Question about Debt Limits. . .
Posted: Wed Apr 23, 2014 11:04 am
Schedules are controlling. See Smith.
If schedules show the junior real property loan is entirely undersecured, then it is counted asunsecured.
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On Wednesday, April 23, 2014 9:15 AM, "bradweillaw@yahoo.com" wrote:
NO that is not correct. If the debtor still owns the property at the time of filing (meaning it has not been foreclosed upon or the deed transferred to someone else (possible fraud issues there be careful) then that debt still counts for the limits. I ran into this issue in front of Judge Zurzolo briefed it and lost. I had to refile the case and it cost my client a full lien strip (the value of the property increased to partially cover the 2nd on an investment property). Either a creditor or the trustee has to raise the issue in an objection but if they do then you cannot get around the debt limit if the debt was owed at the time of filing even if you surrender the property through the plan.
Call me or email me and I can send you the brief I did on that issue.
Brad Weil
Brad@bradweillaw.com or (310) 515-7799
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