A sort of fun 9th Circuit opinion announced

Debtors filed a chapter 7 bankruptcy followed by a chapter 13. HSBC filed a claim for its first mortgage. Debtors objected. HSBC never responded. The claim was disallowed. Debtors then filed an adversary proceeding to strip the lien because it secured a disallowed claim. HSBC didn’t respond. Eventually (a long time later) HSBC showed up, but offered no good excuse for its ridiculous tardiness. Ultimately, HSBC argued that because the debtor isn’t entitled to a discharge in a “chapter 20” bankruptcy, the debtor also can’t void the lien. The court disagreed. I presume the blogosphere will go wild since it perpetuates the myth that people who fight foreclosures often get free houses. As always, there’s a grain of truth...” READ MORE