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IN RE CARVALHO

No. 02-2501.

335 F.3d 45 (2003)

In re Maria Celina CARVALHO and Francisco Andrade, Debtors. Maria Celina CARVALHO and Francisco Andrade, Plaintiffs, Appellees, v. Federal National Mortgage Association, Defendant, Appellant.

United States Court of Appeals, First Circuit.

Decided July 9, 2003.

Attorney(s) appearing for the Case

Deirdre J. Keady, with whom Thomas J. Walsh and Harmon Law Offices, PC were on brief, for appellant.

Jeffrey M. Frankel for appellees.

Before SELYA, Circuit Judge, RICHARD S. ARNOLD, Senior Circuit Judge, and LIPEZ, Circuit Judge.

SELYA, Circuit Judge.

In this case of first impression at the federal appellate level, we must address the effect of post-confirmation default and consequent relief from the automatic stay on the bifurcated lien of a secured creditor. The creditor claims that, in such circumstances, relief from the automatic stay nullifies the earlier lien-stripping order, mends the bifurcation, and restores the lien on the collateral to its original shape. Both the bankruptcy court...

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