In re Williams (Ch. 13 Case No. 01-30762, Adv. No. 07-03034)

The debtor purchased an unimproved parcel of land. The debtors placed a mobile home upon the land. The mobile home was financed by a thrid party. The debtors later executed a mortgage on the land. The debtors filed for Chapter 13 relief, completed their plan payments, and obtained a discharge. The debt on the land was not paid in full through the Chapter 13 plan. The debtors contended that the mortgage on the land was not secured by their principal residence and was not protected by 11 U.S.C. ยง 1322(b)(2). The court held that the mobile home had become part of the land and that the mortgage had survived the debtor's bankruptcy.

Friday, May 30, 2008