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In re Lauridsen (Case No. 7-03-05038) 8/24/2005

Debtors' motion to approve sale of residence free and clear of liens under section 363 approved. The motion was not served on the second lienholder, but the sale of the property free and clear of the first and second deeds of trust and tax lien was authorized by section 363(f)(3) because the net sale proceeds were more than enough to pay such liens in full. Second lienholder had already been paid in full with interest in accordance with the confirmed chapter 13 plan. Additionally, under section 1327(c), residence property was vested back in the debtors free and clear of the second lienholder's claim, subject only to the payment with interest of the determined amount of its claim, which had taken place already.  However, as the second lienholder did not have notice of the sale, sale of property approved but the order authorizing the sale to be served on secured creditor and trustees of deed of trust with limited opportunity to file objection thereto.

Date: 
Wednesday, August 24, 2005
Category: 
363 Sales
Notice and Opportunity
Chapter: 
13