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IN RE DEVER

Bankruptcy No. LA-91-14114-LF. Adv. No. LA-92-03426-LF.

164 B.R. 132 (1994)

In re Stephen and Susan DEVER, Debtors and Debtors in Possession. Stephen and Susan DEVER, Plaintiffs, v. The INTERNAL REVENUE SERVICE, and the California Franchise Tax Board, Defendants.

United States Bankruptcy Court, C.D. California.

February 4, 1994.

Attorney(s) appearing for the Case

Scott C. Clarkson, Clarkson, Lever & Cohn, Torrance, CA, for Stephen and Susan Dever.

Debra Lynn Reale and Irene Scott Carroll, Special Assts. to the U.S. Atty., Los Angeles, CA, for the I.R.S.

LISA HILL FENNING, Bankruptcy Judge.

I. INTRODUCTION

The issue before this Court on cross-motions for summary judgment is whether consumer debtors can use Section 506 of the Bankruptcy Code to "strip down" tax liens on their house in a Chapter 11 case. The Internal Revenue Service (IRS) argues that the holding in Dewsnup v. Timm, 502 U.S. ___, 112 S.Ct. 773, 116 L.Ed.2d 903 (1992), should be extended to Chapter 11 cases to preclude "lien...

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