8th Circuit BAP Okays “Chapter 20” Lien Stripping on Unsecured Homestead 2nd Mortgage

Boot Camper Craig Andresen posted a big victory today when the 8th Circuit Bankruptcy Appeals Panel ruled that a wholly unsecured second mortgage on homestead property could be stripped in Chapter 13 bankruptcy, even if the debtor didn’t qualify for discharge because of a previous Chapter 7 bankruptcy.

This is an important ruling for bankruptcy attorneys and their clients in Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota and South Dakota, some of whom have been unable to lien strip as local judges waited for authority from above.

The full opinion is available on the court’s website: Fisette v. Keller