In re: Ryan

Federal 7th Circuit Court
Civil Court
Case Number: 
No. 12-3398
Decision Date: 
July 8, 2013
Federal District: 
N.D. Ill., E. Div.
In adversary proceeding filed by debtor in his Chapter 13 bankruptcy petition, Bankruptcy Ct. did not err in rejecting debtor’s contention that federal govt.’s lien of $136,898.93 was “void” for all but $1,625, which represented total of debtor’s personal assets. In general, liens pass through bankruptcy unaffected, and under Dewsnup, 502 US 410, section 502(d) of Bankruptcy Code did not allow debtor to void lien. Rather, govt. had unsecured claim for remaining portion of its lien that was not satisfied after tender of debtor’s personal assets. Ct. rejected debtor’s claim that holding in Dewsnup did not apply because Dewsnup concerned Chapter 7 bankruptcy petition.