EDC 3-081-03, Order Confirming Plan, Valuing Collateral and Avoiding Liens (for use in Chapter 13 Ca 2025

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The confirmation order will specifically state that the debtor has met all the requirements under the bankruptcy code to have their chapter 13 plan approved. The chapter 13 confirmation order is, in essence, a final judgment that binds each creditor to the terms stated in the chapter 13 plan.
You are only permitted to strip a junior lien if the amount of the senior lien or liens is greater than the fair market value of the home. Suppose, for example, that your house is worth $325,000, and you have a first mortgage worth $250,000, a second mortgage worth $100,000, and a third mortgage worth $50,000.
What Is a Motion to Avoid a Judicial Lien in Bankruptcy? A Motion to Avoid Judicial Lien is a motion your bankruptcy attorney can file in bankruptcy court to remove an involuntary judgment lien from your house or other property after you have completed bankruptcy.
There are two ways to avoid liens in Chapter 13 bankruptcy through cramdown, or stripping.
But since secured debts are connected to collateral, you dont get to keep the collateral unless you pay the debt. To do so, you may need to reaffirm the debt. In Chapter 13, you repay secured debts through the repayment plan. In both cases, you can surrender the collateral, which means the debt is no longer secured.
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If the obligation underlying the secured claim was used to buy the collateral (e.g., a car loan), and the debt was incurred within certain time frames before the bankruptcy filing, the plan must provide for full payment of the debt, not just the value of the collateral (which may be less due to depreciation).
Lien stripping in Chapter 13 bankruptcy is a process that allows you to eliminate a junior lien (such as second or third mortgage) from your real estate. You can strip a junior mortgage (and the associated lien) if the house is worth less than the balance of the senior mortgage.
If you use a uniform claim identifier, you may report it here. A uniform claim identifier is an optional 24-character identifier that certain large creditors use to facilitate electronic payment in chapter 13 cases.

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