Can I get a second lien removed from title after chapter 7 bankruptcy? Posted on July 11, 2011
I filed chapter 7 BK. was release from the 2nd Lien debt(reaffirmed 1st Lien). Now in a position that I may have to do Deed in Lieu. First lien holder will not move with 2nd Lien on title. I looked at Dewsnup v Timm 502 U.S. 410 (1992), I read Justice Scalia's dissent, joined by Justice Souter then read Nobelman v American Savings Bank 508 US 324 (1993). The conclusion drawn was that Nobleman was secured under 1322(b)(2) the claim is considered secured & may not be modified, consistent with Dewsnup. HOWEVER, Nobelman is only applicable where the collateral retains some value. Circuit & BK courts limit Nobelman to a partially secured lien, 506(a) the lien that is wholly without equity is an unsecured claim thus open to being void under 506(d). Can I get the 2nd released from title?
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