Debtors Motion For Default Judgment RE Complaint To Avoid Junior Lien {F 4003-2.5.JR.LIEN.DEFAULT.MOTION}

F 4003-2.5.JR.LIEN.DEFAULT.MOTION, PLAINTIFF’S (DEBTOR’S) MOTION FOR DEFAULT JUDGMENT RE COMPLAINT TO AVOID JUNIOR LIEN ON PRINCIPAL RESIDENCE [11 U.S.C. § 506(a),(d); FRBP 3012], LBR 4003-2 governs the procedure for a debtor to file a motion to avoid a lien. Sometimes the debtor has entered into an agreement to borrow money on the debtor's residence, and grant a junior lien to the lender. The motion follows Bankruptcy Code section 506 under which the debtor asks the court to rule that the value of the residence is less than the total of the higher priority liens and the junior lien and, therefore, the junior lien is unsecured and can be avoided. This is a practice in chapter 13 cases and in chapter 11 cases when the debtor is an individual. Recently, the Federal Rules of Bankruptcy Procedure allowed this type of lien-avoidance to be sought by filing a motion in a chapter 13 case. The chapter 13 plan must indicate that the debtor intends to file a motion to avoid a junior lien on the debtor's residence. This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. www.FormsWorkflow.com