Hurlburt v. Black

The plain text of 11 U.S.C. 1322(c)(2) authorizes modification of covered homestead mortgage claims, not just payments, including bifurcation of undersecured homestead mortgages into secured and unsecured components. The Fifth Circuit overruled Witt v. United Cos. Lending Corp., 113 F.3d 508 (4th Cir. 1997), which held that Chapter 13 debtors may not bifurcate a narrow subset of undersecured home mortgage loans into separate secured and unsecured claims and cram down the unsecured portion of such loans. Accordingly, the court reversed and remanded for further proceedings. View "Hurlburt v. Black" on Justia Law