Category Archives: Uncategorized

11th Circuit Says No Chapter 20 Lien Strip: Binding Authority?

Suppose a debtor has already filed chapter 7 and discharged his or her debts.  The debtor then files a chapter 13 and attempts to strip off a second mortgage. There have been differing opinions across the country, but locally the judges in the Southern District of Florida have said no.   A debtor who is not eligible to receive a discharge cannot strip a second mortgage. On October 29, 2013 the 11th Circuit held that the lien strip cannot take place in a Chapter 13 after the chapter 7 discharge.  The issue now seems resolved within this circuit which includes Florida-or does it?  See In re Colbourne, 2013 WL 5789159, 2013 US App Lexis 22011.  Colbourne is another unpublished opinion by the 11th Circuit which does not create binding precedent, though should be persuasive.  Also, the case involved non-homestead property.  The court expressly stated that it was not ruling as to junior liens…
Read More »

Posted in Bankruptcy Cases and Laws, Bankruptcy Planning, Chapter 13, Uncategorized | Tagged | Leave a comment

Debt on Stripped Association Liens May Survive When Condo Sold

Though Fort Lauderdale chapter 13 cases routinely enable a debtor to strip the association lien for the amounts due prior to the filing of the bankruptcy, a recent case limits the benefit of eliminating the lien.  This lien stripping of association liens seems to be well settled law amongst the bankruptcy judges in Florida.  Thus a debtor who is way behind to his association, and might be on the eve of foreclosure with the association, can file chapter 13 and eliminate that lien if the property is worth less then the balance of the first mortgage.  (Note that if the association cannot be stripped, the debtor can still pay the arrears plus the current fees over 5 years.) The debtor would continue to owe monthly payments on the current association fees as long as the debtor remains on title. Associations have tried to find a legal argument against this lien strip…
Read More »

Posted in Bankruptcy Cases and Laws, Bankruptcy Planning, Chapter 13, Uncategorized | 1 Comment

New Means Test Figures Effective November 15

The means test figures change nationwide on November 15, 2013.  Cases filed after that date will use new numbers based on US Census Figures.   The median income based on household size changes.  As to a Florida means test,  strangely the income change is lower for household sizes of 1, 3, and 4, but higher as to household size of 2.  The difference is small, except as to a household of 4  the median income is almost $2,000 lower. The median income is as follows: Household size 1        $41,334 Household size 2          51,389 Household size 3          53,952 Household size 4          63,196, plus $8100 for each additional person. A further explanation of the means test and median income can be reviewed at my website by clicking the above Florida means test link.

Posted in Bankruptcy and the Means Test, Bankruptcy Information, Bankruptcy Planning, Uncategorized | Tagged | Leave a comment