American General Finance, Inc. v. Dickerson

BIRCH, Circuit Judge:

Tyrone and Darlene Dickerson (the “Debtors”) appeal the district court’s judgment, which reversed the bankruptcy court’s order finding that American General Finance Inc.’s (“AGF’s”) lien against the Debtors’ principal residence was unsecured and that the Debtors were entitled to strip AGF’s lien against their residence. The bankruptcy court concluded that, because there was inadequate equity in the Debtors’ residence to secure AGF’s lien, AGF’s claim would be considered an unsecured claim in the debtors’ Chapter 13 bankruptcy proceeding. 1 The bankruptcy court further…