Minnesota Homeowners Can Now Remove Second Mortgages From Homes In Certain Circumstances
Thankfully, we now have controlling precedent from the Eighth Circuit Court of Appeals (which, of course, binds the lower Federal courts within the Eighth Circuit, including Minnesota) that adopts the holdings from other circuits; i.e., that a debtor may remove a second mortgage from his/her home in a Chapter 13 bankruptcy in some circumstances. My colleague, Michael Sheridan, has written an excellent post on the decision for our Firm’s Law Watch blog. Since I cannot possibly top his analysis, I’ll invite you to read it here.
Six months ago I posted on this blog about Minnesota bankruptcy judges bucking a nationwide trend by not allowing debtors to remove second mortgages from their homes in a Chapter 13 bankruptcy.