Woolsey v. Citibank, N.A. (In re Woolsey)
- Summarized by Scottie Kleypas , Scottie S. Kleypas Law, LLC
- 13 years 6 months ago
- Citation:
- Woolsey v. Citibank (In re Woolsey), No. 11-4014 (10th Cir. September 4, 2012).
- Tag(s):
-
- Ruling:
- AFFIRMING the District Court, the 10th Circuit held that § 506(d) prevents Chapter 13 debtors from lien stripping and Dewsnup remains the law. However, the holding is limited to application of § 506(d) only.
- Procedural context:
- Appeal from the bankruptcy court for the District of Utah, sustaining junior mortgage holder’s objection to debtors’ initial plan that attempted to void a state law lien secured by no remaining value in collateral.
- Facts:
- Chapter 13 debtors’ plan attempted to “strip” Citibank’s second mortgage on their home because the lien was unsupported by any current value in the home. While the Court of Appeals pointed out that § 1322(b)(2) may offer debtors the power to modify the rights of secured and unsecured creditors, the debtors failed to make this argument causing an opinion that examines only § 506(d).
- Judge(s):
- Gorsuch, Holmes, and Matheson
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