Devora R. Gordy

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: 	:
:
DEVORA R. GORDY 	: 	Case No. 07-22900PM
: 	Chapter 13
Debtor 	:
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MEMORANDUM OF DECISION
Debtor filed an Amended Objection to the proof of claim No. 1 filed by an entity
describing itself as First Franklin, c/o Home Loan Services, Inc. (“First Franklin”), as a secured
claim in the sum of $75,801.78. First Franklin also is the holder of a senior lien on Debtor’s
residence. Debtor filed a Motion on Febroary 19, 2008, to avoid this junior lien pursuant to the
authority of Johnson v. Asset Management Group, LLC, 226 B.R. 364 (D. Md. 1998). That case
points out that a debtor may strip off a junior consensual lien that is wholly unsecured in terms of
§ 506(a) of the Bankruptcy Code and secured only by a security interest in real property that is
the debtor’s principal residence. First Franklin originally filed an opposition to the Motion to
avoid lien that was later withdrawn. Consequently, the court entered an Order on April 18, 2008,
in the form proposed by Debtor’s counsel, granting the Motion to avoid the second mortgage lien
and providing that at such time that a discharge order is entered that the second lien held in favor
of First Franklin shall be void, and further holding that the claim of First Franklin shall be treated
as a general unsecured claim under Debtor’s Plan.
The enigma presented by this Objection is caused by the fact that the Debtor received in a
prior Chapter 7 case, No. 07-13635, within the four-year period preceding the date of the filing
of this case under Chapter 13. Therefore, by virtue of § 1328(f)(1) of the Bankruptcy Code, the
Date signed April 25, 2008
Entered: April 28, 2008 Case 07-22900 Doc 44 Filed 04/28/08 Page 1 of 2

Debtor may not receive a discharge upon the completion of her Chapter 13 Plan. As pointed out
in the case of In Re Bateman, 515 F.3d 272 (CA4 2008), the provision § 1328 of the Bankruptcy
Code that prevents debtors from obtaining a discharge does not bar them from filing a successive
bankruptcy case.
Debtor is bound by the terms of the Order previously entered in this case. The lien
stands. As far as the court can see, this contested matter only becomes significant should the
Debtor seek to refinance the property while this case is pending. The court assumes that upon
consummation of any confirmed plan that the parties will be able to reach an accommodation as
suggested by First Franklin in its response.
An appropriate order will be entered.
cc:
Andrew g. Wilson, II, 275 West Street, Suite 216, Annapolis, MD 21401
Devora R. Gordy, 3707 Edmond Way, Bowie, MD 20716
Ibironke Sobande, Esq., 9440 Pennsylvania Avenue, #350, Upper Marlboro, MD 20772
Nancy S. Grigsby, Trustee, P.O. Box 958, Bowie, MD 20718
End of Memorandum
Case 07-22900 Doc 44 Filed 04/28/08 Page 2 of 2