IN RE BORN

BAP No. KS-06-018. Bankruptcy No. 04-14382-7. Adversary No. 05-5067.

357 B.R. 630 (2006)

In re Charles Lawrence BORN, also known as C L Born, and Lorraine Anne Born, also known as Lori Born, Debtors. Edward J. Nazar, Trustee, Plaintiff-Appellant, v. North American Savings Bank FSB, Charles Lawrence Born, and Lorraine Anne Born, Defendants-Appellees.

United States Bankruptcy Appellate Panel of the Tenth Circuit.

November 28, 2006.


Attorney(s) appearing for the Case

Submitted on the briefs:*

Nicholas R. Grillot, Redmond & Nazar, LLP, Wichita, KS, for Plaintiff-Appellant.

Linda S. Mock, Shapiro and Reid, Overland Park, KS, for Defendant-Appellee North American Savings Bank, FSB.

Before CLARK, CORNISH, and MICHAEL, Bankruptcy Judges.


OPINION

MICHAEL, Bankruptcy Judge.

In this appeal, we are asked to determine the rights of a trustee when he or she avoids a lien upon property of the bankruptcy estate. The obvious answer is that the trustee holds the lien upon the property, and may foreclose on that lien for the benefit of the estate. In this case, notwithstanding the avoidance of the lien, the debtors continued paying the underlying claim. The trustee claims that, under these facts, his...

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