Walkup v. First Interstate (In Re Walkup)

MEMORANDUM DECISION

JANE DICKSON McKEAG, Bankruptcy Judge.

This motion presents the question of whether a junior hen held by the Internal Revenue Service (the “IRS”) against the debtors’ residence may be “stripped off’ in a Chapter 7 bankruptcy case. Keith and Linda Walkup, the debtors herein (the “Debtors”), have sought this rehef pursuant to 11 U.S.C. § 506(d). 1 The IRS contends that the holding by the United States Supreme Court in Dewsnup v. Timm, 502 U.S. 410, 112 S.Ct. 773, 116 L.Ed.2d 903 (1992), prohibits the result sought by the Debtors. As discussed below, the court will deny the…