A Chapter 20 debtor who successfully completes her Chapter 13 plan and obtains strip-off of valueless liens may then have the opportunity to recapture value in her residence, according to attorneys Arthur J. Spector, Ilyse M. Homer and Paul A. Avron.
June 30, 2014 at 10:00 AM
1 minute read
On June 18, the U.S. Court of Appeals for the Eleventh Circuit issued its opinion in Wells Fargo Bank v. Scantling, 13-10558, holding that a Chapter 20 bankruptcy debtor could strip off valueless junior liens on her principal residence despite being ineligible for a discharge in her Chapter 13 bankruptcy case.
Chapter 20 is a colloquialism; it refers to a debtor who files a Chapter 13 case after receiving a discharge in a Chapter 7 case.
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