Tag Archives: McNeal

McNeal Update, continued

This is a further update on stripping second mortgages in chapter 7 cases based on the McNeal decision.  Judge Hyman has approved stripping a second mortgage in a case that was not contested by the secured creditor. See In re McGunagle, 12-26187 (DE 28)(October, 2012). I am still not aware of a decision by a bankruptcy court in the Southern District of Florida granting a strip of a junior mortgage when the lender objected.

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McNeal Update(Chapter 7 Lien Strip in South Florida)

The impact of the 11th Circuit McNeal decision is still unclear as we continue to wait for the en banc decision of the Court. The question still remains: can debtors lien strip junior mortgages in chapter 7 in the Southern District of Florida? Judge Mark has permitted a lien strip in a chapter 7 but only on the basis that the creditor did not object. In re Aragon, 09-27916 RAM(DE 51). However, Judge Mark in the Miami Bankruptcy Division has set a briefing schedule with the caveat that “this court expects to reject the McNeal holding and follow its earlier decision in Gerardin“. In re Martin, 11-42725 (DE 75.) Judge Ray in the Fort Lauderdale Bankruptcy Division apparently has deferred ruling in In re Wollen, 12-25993. One might speculate whether the courts will be waiting on the 11th Circuit en banc ruling, at least as to any contested matter. If…
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McNeal Update

On June 1, the creditor in McNeal filed a Petition for Rehearing En Banc. This means that the creditor is requesting that the entire 11th Circuit Court review the decision. Continue reading

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