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  • What Chapter 13 provision allows for the “stripping” of unsecured liens? And, when is the lien actually stripped?
Bankruptcy & Student Loan Relief

What Chapter 13 provision allows for the “stripping” of unsecured liens? And, when is the lien actually stripped?

March 3, 2013March 30, 2023 Mike Shovan

Chapter 13 debtor may strip unsecured lien under Code § 1322(b)(2), but not § 506(d). Further, stripping an unsecured lien in Chapter 13 requires that debtor receive discharge. A lien cannot be avoided before the Chapter 13 debtor’s discharge is entered.

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