In re Smith (Ch. 7 Case No. 03-30458, Adv. No. 03-03031)
Prior to filing for relief, the debtor advised the creditor that she was rescinding her mortgage obligation pursuant to the Truth-in-Lending Act. The creditor filed an adversary proceeding to confirm the validity and extent of its lien and to determine that the debtor's obligation for her "wrongful purported rescission" was nondischargeable in bankruptcy. The debtor moved to dismiss the adversary proceeding, contending that it was a non-core proceeding. The court noted that the trustee had not abandoned the real property and that the debtor's bankruptcy case had not been closed. The court noted that the trustee may have a valuable asset to administer if the creditor's lien is subject to rescission. The court held that the adversary proceeding was a core proceeding and denied the debtor's motion to dismiss.