In re Jackson (Ch. 13 Case No. 03-53485, Adv. No. 04-05055)
The creditor loaned the debtor funds to purchase a residence. The debtor moved from the residence. The debtor offered to pay through her Chapter 13 plan the value of the residence and to treat the remainder of the creditor's claim as unsecured. The creditor contended that modification of its claim was prohibited by 11 U.S.C.A. § 1322(b)(2) because its claim was secured by the debtor's principal residence.
The Court held that the critical date for deciding whether a creditor qualifies for § 1322(b)(2) protection is the date the petition is filed, not the date the loan was made. The Court held that the creditor's claim was not protected because the residence was not the debtor's principal residence when the bankruptcy petition was filed