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In re Rollins (Case No. 05-65013) 11/08/2006

Creditor objected to confirmation of the debtor's modified Chapter 13 plan.  The issue is whether a debtor may, through the provisions of a Chapter 13 plan, modify a creditor's claim that is secured only by an interest in a mobile home and land upon which it rests.  Under 11 U.S.C. § 1322(b)(2), a Chapter 13 plan may not modify (1) a secured claim (2) that is the debtor's principal residence (3) that is secured only by an interest in real property.  The first two requirements are easily met.  The third, however, presents the issue of whether the land and the mobile home, taken together, constitute "real property" as that term is used in Section 1322(b)(2).  The Court held that the debtor’s mobile home and land, taken together, does constitute real property that is the debtor’s principal residence.  As such, the debtor’s plan may not modify the creditor’s rights in the mobile home and land; the creditor's objection is sustained.

Date: 
Wednesday, November 8, 2006
Category: 
Confirmation of Plan
Chapter: 
13