In Re Larkin

ORDER DENYING MOTION TO APPROVE STIPULATION TO COMPROMISE CONTROVERSY

ERIK P. KIMBALL, Bankruptcy Judge.

In this case, the chapter 7 trustee seeks an order approving a settlement with the mortgage lender holding a lien on the debtor’s homestead. Under the proposed settlement, the bankruptcy estate would receive $10,000 and the estate would waive not only the counterclaim brought by the debtor against the lender in the lender’s pre-petition foreclosure action but all of the debtor’s defenses raised in that foreclosure action. The trustee and mortgage lender argue that the debtor’s defenses are…