The Ninth Circuit allows chapter 13 debtors on their own to accelerate payments to creditors and secure their discharges more quickly without modifying their plans.
A claim must be disallowed based on the invalidity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit ruled in upholding the BAP.
Judge Klein’s opinion reads like an amicus brief urging the Supreme Court to grant ‘cert’ and resolve a circuit split by taking sides with the majority on Section 362(c)(3)(A).
Majority on Ninth Circuit panel believe that having previously extended a deadline allowed the invocation of “excusable neglect” to extend the deadline again after it expired.
If a creditor objects to chapter 13 eligibility in good faith, the court may look behind the debtor’s schedules to decide whether the debt exceeds the cap.