Case No. 05-13333.United States Bankruptcy Court, N.D. Indiana, Fort Wayne Division.
April 17, 2006
DECISION AND ORDER
ROBERT GRANT, Bankruptcy Judge
There is a split of authority on how a chapter 13 debtor can deal with a lien on property which has no value to support it. Some say that the lien can be stripped through confirmation of the chapter 13 plan. See e.g., In re King, 290 B.R. 641
(Bankr. C.D. Ill. 2003); In re Hill, 304 B.R. 800, 805 (Bankr. S.D. Ohio 2003); In re Wolf, 162 B.R. 98, 106 (Bankr. D.N.J. 1993); In re Beard, 112 B.R. 951, 955-56 (Bankr. N.D. Ind. 1990). See also, In re Black, 2002 WL 31719957 (Bankr. N.D. Ind.). Others say an adversary proceeding is required. Seee.g., In re Pierce, 282 B.R. 26, 28 (Bankr. D. Utah 2002); Inre Kressler, 252 B.R. 632, 634-35 (Bankr. E.D. Pa. 2000). One way it cannot be done, however, is through a motion to avoid the lien. See, In re Indvik, 118 B.R. 993, 1006-07 (Bankr. N.D. Iowa 1990). Debtor’s Motion to Avoid Mortgage Lien of American General Finance is therefore DENIED.[1]
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