Order Granting Motion To Avoid Lien On Debtors Principal Residence {LBF H}

LBF-H - ORDER GRANTING MOTION TO AVOID LIEN ON DEBTOR’S PRINCIPAL RESIDENCE PURSUANT TO 11 U.S.C. § 506. This form is used in Chapter 13 bankruptcy cases in the United States Bankruptcy Court for the District of Maryland. This order is issued after the court has reviewed and approved a debtor’s motion to avoid a lien on their primary residence. Pursuant to 11 U.S.C. § 506 and relevant case law, the order determines that the lien held by the respondent (typically a second mortgage or junior lienholder) is wholly unsecured—meaning there is no equity in the property to support the lien after accounting for senior liens. As a result, the lien is declared void, but only upon the debtor’s completion of their confirmed Chapter 13 plan or entry of a discharge order. Until then, the lien remains in place. The order also allows the respondent’s claim as a general unsecured claim for the purposes of plan distribution, subject to further objections. This form ensures that the lien avoidance is legally recognized and properly documented, and it must be submitted with the debtor’s motion in accordance with Local Bankruptcy Rule 3012-1. www.FormsWorkflow.com