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IN RE SANTOS

Bankruptcy No. 87-03443F, Adv. No. 88-0438F.

97 B.R. 227 (1989)

In re Manuel SANTOS Louise Santos, Debtors. Manuel & Louise SANTOS, Plaintiffs, v. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT and Edward Sparkman, Trustee, Defendants.

United States Bankruptcy Court, E.D. Pennsylvania.

March 13, 1989.

Attorney(s) appearing for the Case

Roger V. Ashodian, Delaware County Legal, Chester, Pa., for debtors/plaintiffs, Manuel Santos and Louise Santos.

Michael M. Baylson, U.S. Atty., Virginia R. Powel, Asst. U.S. Atty., Philadelphia, Pa., for defendant, U.S. Dept. of Housing and Urban Development.

Edward Sparkman, Philadelphia, Pa., defendant/standing Chapter 13 trustee.

OPINION

BRUCE I. FOX, Bankruptcy Judge:

The instant adversary proceeding challenges a proof of claim filed by the Department of Housing and Urban Development (HUD). In so doing, it raises difficult questions regarding the effect of a chapter 13 proceeding on the mortgage assignment program operated by HUD.

On July 9, 1987 the debtors filed a voluntary petition in bankruptcy under chapter 13. Thereafter, HUD filed a proof of claim, in accordance with...

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