Cox v. Union County Bank (In Re Cox)

CLIVE W. BARE, Bankruptcy Judge.

At issue in this chapter 13 case is the validity of a $27,500.70 “secured” claim filed by Union County Bank. The Bank contends the claim, based on a note signed only by the debtor’s husband, is secured by real property owned solely by the debtor. Challenging the validity of the claim are both the debtor and the trustee. 1 Also at issue is whether the debtor is entitled to recover of the Bank the state statutory penalty for failure to release a deed of trust. Tenn.Code Ann. § 66-25-102 (1982).

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Margie Cox, the debtor, filed her chapter 13 petition on November 13,…