In re Lyons (Ch. 13 Case No. 17-51834, Adv. No. 17-05048)

The debtors signed a deed to secure debt which secured a debt that was due and payable no later than August 29, 2008. The debt was not satisfied and the debtors filed Chapter 13 bankruptcy in August 2017. The Bankruptcy Court held that, pursuant to Georgia Code O.C.G.A. § 44-14-80(a), title to the real property reverted to the debtors seven years after the maturity date of the debt. The court rejected the grantee’s assertion that the deed contained an affirmation statement that the parties intended to establish a perpetual or indefinite security interest.

Wednesday, January 31, 2018