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Sixth Circuit Creates a Split by Requiring Dismissal of an Abusive Chapter 13 Filing

Disagreeing with two other circuits, the Sixth Circuit finds no power in the bankruptcy court to avoid dismissing a chapter 13 case even if the debtor filed repeatedly in bad faith to avoid foreclosure.
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Judge Kendig Implies that Failure to Run a Lien Search is Tantamount to Malpractice

The debtors’ lawyer’s lack of diligence allowed the creditor to invoke laches and beat a belated motion to avoid a lien that impaired a homestead exemption.

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