Tuesday, June 24, 2008

bankruptcy - ch. 13 - lien avoidance - adversary proceeding required

In re Mansaray-Ruffin - 3d Circuit - June 24, 2008


"This appeal requires us to determine whether the debtor in a Chapter 13 bankruptcy case successfully invalidated a lien on her property by providing for it as an unsecured claim in her confirmed plan, without initiating an adversary proceeding as required by the Federal Rules of Bankruptcy Procedure. We agree with the lienholder, as well as with the Bankruptcy Court and the District Court, that the answer to this question is no. Accordingly, we will AFFIRM."

This was a 2-1 decision. David Scholl represented the debtor.