In re Jackson (12-10757)
When a secured creditor's collateral is subject to joint ownership and the joint owner is also a cosigner on the debt, then a lien release provision in the debtor's plan renders the creditor's lien unenforceable against the debtor's interest in the collateral upon the debtor's discharge. However, the creditor may retain its lien to the extent of the co-owner's interest in the collateral until such time as the creditor receives payment of its debt in full at the contract rate.
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Tuesday, December 18, 2012