Oudomsouk v. Bank of America, N.A. (In re Oudomsouk)

MEMORANDUM OPINION

RANDAL S. MASHBURN, Bankruptcy Judge.

The parties in this adversary proceeding have stipulated their way into an artificial fact scenario that tests the judicial process. They have posed this question: what should be done with the underlying lien when a secured claim is disallowed pursuant to a default process even though it is now undisputed that the secured lender has an otherwise completely valid, enforceable, and unavoidable lien?

The Debtors and Chapter 13 Trustee assert that disallowance of the secured claim is a sufficient basis to void the lien itself pursuant to 11…