Chapter 13 Property Valuation and Lien Avoidance
Posted: Thu Apr 10, 2008 10:37 am
The order valuing the property states that the lien will be avoided
upon ENTRY OF THE DISCHARGE. And, so, conventional wisdom is that
conversion of the case to a Chapter 7 will not effectuate the
discharge or avoidance of the lien, and in any event, usually, the
senior lien remains in default, so conversion does the Debtor no good.
Now, some unconventional wisdom may argue that after confirmation of
the Chapter 13 Plan and consummation of the plan through payments made
over a period of time, a motion may follow for the sale of the
property at not more than the court ordered value, following from
which the Debtor may be entitled to a discharge, including that of the
avoided lien. Can we have some discussion on this one!!
Best regards. Lou Esbin
Law Offices of Louis J. Esbin
27201 Tourney Road, Suite 122 | Valencia, CA 91355
Tel: 661-254-5050 | Fax: 661-254-5252 | Web: www.Esbinlaw.com
Certified Bankruptcy Specialist - State Bar of California
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