Craft v. Ratti (In Re Craft)

MEMORANDUM OPINION ON PLAINTIFFS’ COMPLAINT TO DETERMINE INVALIDITY OF DEFENDANT’S LIEN

ARTHUR J. SPECTOR, Bankruptcy Judge.

Robert Lee and Judy Kay Craft (“the debtors” or “the plaintiffs”) filed their voluntary petition for relief under Chapter 13 of the Bankruptcy Code on July 29, 1988. At the time they filed, their home was in jeopardy of foreclosure of a construction lien asserted by Gary Ratti d/b/a Ratti Builders (“the defendant”). Mr. Ratti objected to the confirmation of the debtors’ Chapter 13 plan on the ground that it failed to provide for the payment in full of his secured claim…