Lane v. The Bank of New York Mellon, No. 18-60059 (9th Cir. 2020)Annotate this Case
A bankruptcy court may not void a lien under 11 U.S.C. 506(d) when a claim relating to the lien is disallowed because the creditor who filed the proof of claim did not prove that it was the person entitled to enforce the debt the lien secures.
The Ninth Circuit affirmed the bankruptcy appellate panel's opinion reversing the bankruptcy court's summary judgment for the Chapter 13 debtor in the debtor's adversary proceeding seeking a declaration that a lien securing a disallowed claim was void. Because debtor conceded that if the panel affirmed the BAP on this issue, then the order reversing the fee award should also be affirmed. Therefore, the panel affirmed the BAP's decision to reverse the fee award.