Bankr. No.:
86-10254
Chapter:
12
Date of Decision:
July 28, 2005
Issue:
(1) Whether a creditor was bound by the terms of the debtors’ confirmed plan, which treated the creditor’s secured claim as "wholly undersecured"? (2) Whether a creditor’s lien was extinguished by confirmation of the debtors’ plan?
Ruling:
(1) Where the creditor received proper notice of the debtors’ plan and the confirmation hearing, and did not appeal the order confirming the debtors’ plan, the creditor is bound by the terms of the debtors’ confirmed plan. (2) Where the creditor participated in the debtors’ case by filing a proof of claim, the creditor’s claim was expressly dealt with and provided for by the debtors’ plan, and neither the debtors’ plan nor the Court’s order confirming the debtors’ plan preserved the creditor’s lien, the creditor’s lien was extinguished upon confirmation of the debtors’ plan.
Full Bankruptcy Court Decision:
