Farha v. First American Title Insurance (In Re Farha)

MEMORANDUM OPINION DENYING DEFENDANT’S MOTION TO DISMISS PURSUANT TO FED.R.CIY. PROC. 12(b)(6)

RAY REYNOLDS GRAVES, Bankruptcy Judge.

Introduction

The matter before this Court is Defendant’s motion under Fed.R.Civ.Pro. 12(b)(6) to dismiss Debtors’ complaint to void mortgage by Creditor, First American Title Insurance Company pursuant to 11 U.S.C. § 506(d). Debtors’ complaint seeks to discharge and avoid a third mortgage held by Defendant, First American Title Insurance Company. Defendant asserts that Plaintiffs attempt to void its lien is prohibited in chapter 7 proceedings.

Background

On March 4,…