Lender Alert: New Jersey Bankruptcy Court Allows Debtor to Strip Lien Securing Spousal Obligation

Lender Alert: New Jersey Bankruptcy Court Allows Debtor to Strip Lien Securing Spousal Obligation | Michael L. Moskowitz

By Michael L. Moskowitz and Melissa A. Guseynov

On September 23, 2016, Bankruptcy Judge Christine M. Gravelle, U.S.B.J. held that a chapter 13 debtor may strip off a wholly unsecured lien on a primary residence where the debtor is the sole owner of the property, even if the non-debtor ex-spouse is liable on the debt which the debtor seeks to strip. In re Mensah-Narh, 2016 WL 5334973 (Bankr. D.N.J.. Sept. 23, 2016). Read the full opinion here.

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