Bankr. No.:
99-40138
Adv. No.:
01-4011
Chapter:
7
Date of Decision:
July 17, 2001
Issue:
Whether lien SBA held on life insurance policy pre-petition survived Debtors’ Chapter 7 discharge where Debtors declared the policy exempt?
Ruling:
SBA’s lien survived post-discharge. Debtors’ exemption declaration did not impact the lien. 11 U.S.C. § 522(c)(2). There were also no grounds to void the lien under 11 U.S.C. § 105(a).
Full Bankruptcy Court Decision:
