Property – Secured Lien 

Posted: 1:00 am Mon, April 12, 2010
By admin

Where the Ch. 13 debtor scheduled a first mortgage on the debtor’s homestead as a secured claim and the second mortgage on the homestead as a general unsecured claim; and the debtor asserts that the first mortgage is under-secured, leaving no equity for the second mortgage; the Bankruptcy Court concludes that 11 U.S.C. sec. 506(a) does not apply to claims secured only by a lien on a debtor’s principal residence, and even though the creditor did not object to treatment of its claim as unsecured and did not respond to the debtor’s objection to its filed claim, the debtor’s objection to the creditor’s claim is overruled and confirmation of his plan is denied.