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Court Ruling May Help Lenders in Chapter 7 Bankruptcy Cases.(Brief Article)
In a precedent-setting decision, the United States Court of Appeals for the Fourth Circuit - with jurisdiction over Maryland, North Carolina, South Carolina, Virginia and West Virginia - has ruled that a debtor in Chapter 7 bankruptcy "may not strip off an unsecured, but allowed lien," from their property.
The unanimous ruling was written by Judge Lacy H. Thornburg in a joint decision regarding two cases - Ryan v. Sovereign Bank and Cunningham v. HomeComings Financial Network.
Judge Thornburg wrote that the practical effect of the debtor's argument is to "freeze" the creditor's secured interest at the judicially ...
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Source: HighBeam Research, Court Ruling May Help Lenders in Chapter 7 Bankruptcy Cases.(Brief...