An unsecured junior lien on the debtors' residential real estate may be avoided after the debtors complete Chapter 13 plan payments. The case law in the Eighth Circuit permits wholly unsecured liens to be stripped off.

The court is unable to determine whether or not the defendant in a § 523(a)(2)(B) dischargeability proceeding is entitled to summary judgment because the movant failed to submit any evidence in support of the motion.

The court granted summary judgment to the debtor, ordering that a wholly unsecured junior lien on the debtor's residential real estate may be avoided after the debtor completes Chapter 13 plan payments.

After a trial, the court overruled the debtors' objections to the claims of their lenders, finding that the debtors had ratified the loans and waived any challenges to the loans' validity by virtue of their conduct and course of dealing with the lender. The court also dispensed with the debtors' "mutual mistakes" argument concerning the loan documents, and ruled that the debtors failed to produce sufficient evidence that they are not liable on the loans to overcome the prima facie validity of the lender's claims.

The court granted summary judgment to the debtors, ordering that a wholly unsecured junior lien on the debtors' residential real estate may be avoided after the debtors complete Chapter 13 plan payments.

An unsecured junior lien on the debtor's residential real estate may be avoided after the debtor completes Chapter 13 plan payments. The case law in the Eighth Circuit permits wholly unsecured liens to be stripped off.

The debtor purchased cattle from the defendant pre-petition, and his payment checks were dishonored. The seller filed a replevin action and obtained possession of the cattle pursuant to an order from the state court. Shortly after that replevin order was entered, the debtor filed a Chapter 11 petition. The debtor in possession then filed this adversary proceeding to exercise his avoidance powers and set aside the seller's successful reclamation of the cattle.

The court entered a default judgment excepting a debt from discharge in an adversary proceeding where the debtor was served with process but did not respond. The complaint requested relief under both § 523 and § 727, but the motion for default judgment did not include a prayer for denial of discharge under § 727, so that portion of the motion was denied.

After trial, the court granted the debtor's request to discharge her student loans. She has a stable job, although not in her field of study, but has been unable to find a better-paying job in the Lincoln area and is unlikely to earn significantly more in the future. Her monthly expenses are modest and reasonable. The stress of financial problems, including repayment of these student loans, has had an impact on the debtor's emotional health and caused difficulties in her personal relationships.

The court ruled that the debtor remains personally liable for all ancillary amounts still owing in connection with a judgment, if the judgment is found to be non-dischargeable. Therefore, the debtor would owe the judgment rate of interest on the debt until it is paid in full. Here, summary judgment was denied so a trial could be held to determine dischargeability.