COURTS DIVIDED OVER HOME VALUE DATES FOR JUNIOR LIEN STRIP PLANS IN CHAPTER 13 （ PART 1 ）

（ PART 2 ）

If the lien is not stripped, debtor will have to continue making payments on the 2nd mortgage to creditor. Thus, it’s a major hardship for debtor particularly if it’s a large payment. If the lien is stripped, debtor no longer has to pay the 2nd mortgage which is a big relief for him.

Section 506(a)(1) gives courts the discretion to value collateral based on the “purposes of the valuation”. In Re Garn (Utah 10/13), the court valued the house as of the petition date because that is when a creditor’s status is determined. In Re Cahill (N.H 12/13), the court found the house needed to be valued near the confirmation hearing date. In California, it is settled by the 9th Circuit in Re LAM that the petition date is the value date. That’s why in Los Angeles, an MTA is called a LAM motion.

“Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God. And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus” -Philippians 4:6-7.

Lawrence Bautista Yang is a graduate of Georgetown University Law Center and has been in law practice for thirty years. He specializes in bankruptcy, business and civil litigation and has handled more than five thousand successful bankruptcy cases in California. He speaks Mandarin and Fujien and looks forward to discussing your case with you personally. Please call (626) 284-1142 for an appointment at 1000 S Fremont Ave, Mailstop 58, Bldg A-1 Suite 1125, Alhambra, CA 91803.