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Doney & Associates www doney net Bankruptcy Cases Listed cases are intended as suggestions for areas of research They may not be applicable in all jurisdictions and may be subect to contrary rulings Chapter & The limitation for homesteads under The Bankruptcy Abuse Prevention and Consumer Protection Act of may not apply to opt out states such as Arizona Chapter Stripping Second Mortgage Wholly unsecured second mortgage may be stripped from homestead In re Zimmer F d Chapter debtor filed adversary complaint seeking to avoid a second mortgage The value of property securing the mortgage was less than the balance of the first mortgage making the second position deed of trust wholly unsecured The Bankruptcy Court dismissed the complaint for failure to state a claim and debtor appealed to the District Court which affirmed the lower court The th Circuit Court of Appeals reversed and remanded the case finding that the Bankruptcy Code's antimodification protection of § is only available to holders of secured claims so a wholly unsecured lien on a primary residence may be avoided in a Chapter proceeding § allows a debtor's plan to modify the rights of holders of secured claims
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