Enewally v. Washington Mutual Bank (In re Enewally)
Court of Appeals for the Ninth Circuit
1Opinion of the Court
THOMAS, Circuit Judge.
In this appeal, we consider whether a Chapter 13 bankruptcy plan may provide for dividing a loan into secured and unsecured claims, commonly referred to as “lien stripping,” with the debtor satisfying the secured claim beyond the life of the Chapter 13 plan. We conclude that this type of plan is not permitted under Chapter 13 of the Bankruptcy Code, and we affirm the judgment of the district court.
I
In 2000, Ikechukwu and Uzoamaka Ene-wally filed a joint voluntary petition for Chapter 13 bankruptcy and an accompanying Chapter 13 plan. In their schedules, the Enewallys…
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