Ryan v. Homecomings Financial Network

Affirmed by published opinion. Judge THORNBURG wrote the opinion, in which Judge LUTTIG and Judge TRAXLER joined.

OPINION

THORNBURG, District Judge:

In this appeal we are asked to decide whether a debtor who has filed for Chapter 7 bankruptcy may “strip off’ an allowed unsecured lien pursuant to 11 U.S.C. § 506(d). Because we find that the Supreme Court’s reasoning in Dewsnup v. Timm, 502 U.S. 410, 112 S.Ct. 773, 116 L.Ed.2d 903 (1992), is equally applicable to “strip offs” as to “strip downs”, we hold that a debtor may not strip off an unsecured but allowed lien pursuant to Section 506(d).

I.…