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Lien-Stripping in Consumer Bankruptcy: Bringing or Defending Actions to Avoid Junior Mortgages

Description
This panel will review contemporary decisions interpreting Dewsnup v. Timm and Nobelman v. American Savings Bank, such as the Wachovia Mortg. v. Smoot, 478 B.R. 555 (E.D.N.Y. 2012), which precludes lien-stripping. The discussion will also focus on §§ 1123(b)(5) and 1322(b)(2), including conflicting decisions involving the date that is relevant for deciding whether a particular property functions as the debtor’s principal residence (see In re Proctor, 494 B.R. 833 (Bankr. E.D.N.C. 2013)). The panel might also discuss lien-stripping as it involves properties outside the principal residence’s safe harbor.
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