Discharge of Second Liens Against Chapter 7 Debtors

May 28, 2010

In a recent Chapter 7 Bankruptcy Filing in San Diego, the McMillan Law Group successfully defended a Debtor against a motion for relief from stay filed by the Debtors alleged Second Lien Holder.  The Debt as to the Debtor has accordingly, been discharged.

In the Mortgage Meltdown, many banks transferred ownership of loans to newly formed entities which were charged with enforcement.  In the haste to sell and procure these assets, many formalities were overlooked by major lending institutions.

In the case at hand, the lending institution neglected to document the complete chain of title for the loan.  Accordingly, the McMillan Law Group was able to challenge the moving party’s standing to enforce the loan. The Federal Court agreed with the arguments of the McMillan Law Group, and the motion for relief from stay was denied. The debt is now unenforceable against the Debtor.

This is just another example of how the McMillan Law Group remains positively engaged to exceed expectations.

{ 1 comment… read it below or add one }

Bob June 30, 2010 at 4:23 am

Many of the times bankruptcy helps as it makes one debt free within a few years or helps a debtor clean up his debts at a single chance, its good for McMillan. Thanks for this update as i am also in filing process.

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