Lien Strip after in 13, Possible??

[sprestige]

Has anyone heard if a lien strip can be done after being in a 13. I have a love hate relationship with my house. I owe $422k ($330k) on a first and $90k on the second. I have thought about walking away, but it is the only thing I still own. The market has tanked and my house is worth $190k (lots of comps for this sum).
When I filed last year, I estimated the value at $335k my unhelpful mill lawyer didn't suggest that I should appraise and try to lien strip the 2nd).

Now I have been in the plan a year, and the value is less then the 1st. Has anyone tried to lien strip a second after being in the plan? Any ideas on how or if it is even possible?
Thanks for any info.

[justbroke]

Now I have been in the plan a year, and the value is less then the 1st. Has anyone tried to lien strip a second after being in the plan? Any ideas on how or if it is even possible?

I don't believe it's possible, and here's why.

Confirmation of a Plan is considered something called res judicata (or previously adjudicated) as to those things which the court could determine. This generally means that all claims, objections, motions to value or avoid lien, etc, have been determined or should have been determined before or at confirmation.

Even moreso, if it weren't considered res judicata, I don't think you could revalue personal property after confirmation anyhow. The confirmation determines the status of debt as of the petition date. With this much time from your petition date, through confirmation, and into the Plan, there's no real way to tell what the basis (or status) of your claim was on or about the filing of the petition.

At least, that's my interpretation of the existing Code, my experience on lien stripping, and caselaw.

[krielly]

Perhaps one solution would be to let the Chapter 13 dismiss, and then refile the 13 again, proposing a lien strip on the second..........????

This is just off the top of my head, but others can chime in who have more experience...........

I'm NOT an attorney, and I do NOT know if this would be possible, but its just a thought.

K

[HHM]

Yeah, this is an interesting issue right now.

Technically, I see no reason why you could not amend your plan. You have a right to modify your plan at any time during your chapter 13. But what you can modify post confirmation is more limited, see section 1329. I think Justbroke is probably correct, I don't think you can do a post confirmation lien strip.

Assuming you even can modify the plan to do a lien strip post confirmation, the value of the home is set at the date your BK was filed.

As Kriely pointed it, you could conceivably allow your current BK 13 to get dismissed (i.e. miss a payment or request voluntary dismissal), but you should go see a "real" BK lawyer to assess whether that strategy is really in your best interests.