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BURKHART v. GRIGSBY

No. 16-1971.

886 F.3d 434 (2018)

Edwin Michael BURKHART; Teresa Stein Burkhart, f/k/a Teresa S. Barham, Debtors-Appellants, v. Nancy Spencer GRIGSBY, Trustee-Appellee, and Community Bank of Tri-County, Defendant.

United States Court of Appeals, Fourth Circuit.

Decided: March 29, 2018.

Attorney(s) appearing for the Case

ARGUED: John Douglas Burns , BURNS LAW FIRM, LLC, Greenbelt, Maryland, for Appellants. Rebecca Anne Herr , OFFICE OF CHAPTER 13 TRUSTEE, Annapolis.

Maryland, for Appellee. ON BRIEF: Mary Park McLean , OFFICE OF CHAPTER 13 TRUSTEE, Bowie, Maryland, for Appellee.

Reversed and remanded by published opinion. Judge Diaz wrote the opinion in which Judge King and Senior Judge Shedd joined.

In this case, we consider whether a bankruptcy court may strip off valueless liens on a Chapter 13 debtor's principal residence when no proof of claims have been filed. The trustee opposed the debtors' request to strip the liens, arguing that 11 U.S.C. § 506(d)1 expressly prohibits lien avoidance...

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