In re Williams (Ch. 7 Case No. 12-11169, Adv. No. 12-01027)

Chapter 7 debtors' real and personal property were subject to an IRS tax lien. The lien was wholly unsecured as to the real property and partially secured as to the personal property. Debtors sought to strip off the lien as to the real property. Because the lien attached to some equity in the personal property, the IRS's claim was an allowed secured claim for purposes of 11 U.S.C. ยง 506(d). Therefore, the Supreme Court's decision in Dewsnup v. Timm applied to prohibit lienstripping.

Friday, March 15, 2013