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Rose v. Peoples Loan Co. (In re Rose) (Case No. 04-03490; A.P. No. 04-07123) 1/6/2005

Court held that it had "related to" jurisdiction to consider the nature and extent of lien at issue. As creditor did not consent, Court held that Bankruptcy Code did not accord it any power to invalidate a voluntary pre-bankruptcy grant of a security interest by the debtor to secure a purchase money loan.  Court declined to enter default order requiring creditor to release its lien rights in property which debtor sought to hold as exempt. Creditor entrusted the lien documentation to the debtor who was to note security interest on the certificate of title with the DMV, but the debtor did not fulfuill this responsibility until after petition was filed.

Date: 
Thursday, January 6, 2005
Category: 
Jurisdiction
Lien Avoidance
Chapter: 
7