HSBC Bank v. Blendheim, No. 13-35354 (9th Cir. 2015)Annotate this Case
Debtors are "Chapter 20 debtors" who filed for Chapter 7 and then Chapter 13 relief. The court concluded that the bankruptcy court properly voided HSBC’s lien under section 506(d) of the Bankruptcy Code, confirmed debtors' Chapter 13 plan offering permanent voidance of HSBC’s lien upon successful plan completion, and found no due process violation or bad faith purpose in filing the Chapter 13 petition. Therefore, the court affirmed the bankruptcy court’s lien-voidance order, plan confirmation order, and plan implementation order. In regards to debtors' cross-appeal for attorneys' fees, the court concluded that the district court lacked jurisdiction to determine whether debtors were entitled to attorneys’ fees because this issue was not addressed, in the first instance, by the bankruptcy court. Therefore, the court vacated the district court's denial o fees and instructed the district court to remand to the bankruptcy court for a determination of debtors' entitlement to attorneys’ fees in the first instance.