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IN RE WALKUP

Bankruptcy No. 94-20230-B-7.

183 B.R. 884 (1995)

In re Keith Alfred WALKUP and Linda Ina Walkup, Debtors. Keith Alfred WALKUP and Linda Ina Walkup, Movants, v. FIRST INTERSTATE, Lone Star Industries, Inc., Boyd G. Lester, Interstate Fuel Systems, Sierra Gypsum, Inc., United States of America, State of California, Payless Cashways, Inc., Point West Bank, California Pavement Maintenance Company, Inc., Pacific Coast Building Products, John Zanoni, Christensen Door Company, and Campbell's Carpets, Inc., Respondents.

United States Bankruptcy Court, E.D. California.

May 2, 1995.

Attorney(s) appearing for the Case

Robert T. DeMarco, Rancho Cordova, CA, for debtors.

Thomas M. Rohall, Lori M. Mersereau, Sp. Assts., U.S. Atty., Sacramento, CA, for I.R.S.

Kenneth Sanders, Chapter 7 Trustee, Sacramento, CA.

MEMORANDUM DECISION

JANE DICKSON McKEAG, Bankruptcy Judge.

This motion presents the question of whether a junior lien held by the Internal Revenue Service (the "IRS") against the debtors' residence may be "stripped off" in a Chapter 7 bankruptcy case. Keith and Linda Walkup, the debtors herein (the "Debtors"), have sought this relief pursuant to 11 U.S.C. § 506(d).1 The IRS contends that the holding by the United...

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