5 F.3d 545 (10th Cir. 1993), 93-6108, Matter of Barnes
|Citation:||5 F.3d 545|
|Party Name:||In re Larry Michael Barnes and Janice Kay Barnes, husband and wife, Debtors. Larry Michael BARNES and Janice Kay Barnes, husband and wife, Appellees, v. KNUTSON MORTGAGE CORPORATION, Appellant.|
|Case Date:||September 29, 1993|
|Court:||United States Courts of Appeals, Court of Appeals for the Tenth Circuit|
This opinion appears in the Federal reporter in a table titled "Table of Decisions Without Reported Opinions". (See FI CTA10 Rule 36.3 regarding use of unpublished opinions)
Before ANDERSON, BARRETT, and TACHA, Circuit Judges.
ORDER AND JUDGMENT 1
After examining the briefs and appellate record, this panel has determined unanimously that oral argument would not materially assist the determination of this appeal. See Fed. R.App. P. 34(a); 10th Cir. R. 34.1.9. The cause is therefore ordered submitted without oral argument.
Appellees Larry and Janice Barnes ("debtors") filed a Chapter 13 Bankruptcy Petition on June 9, 1992. In their Proposed Plan, debtors sought to bifurcate the claim of Appellant Knutson Mortgage Corporation ("Knutson"), the holder of a note secured by a mortgage on the debtors' principal residence, into a secured claim equal to the stipulated fair market value of the residence and an unsecured claim equal to the balance remaining under the note.
Knutson objected to the Proposed Plan, and the Bankruptcy Court for the Western District of Oklahoma denied confirmation of the Plan, following the reasoning of the Fifth Circuit in Nobelman v. American Savings Bank, 968 F.2d 483 (5th Cir.1992), aff'd, 113 S.Ct. 2106 (1993), and concluding that bifurcation is not permitted. The debtors appealed to the district court, which reversed the ruling of the bankruptcy court, holding that Eastland Mortgage Co. v. Hart (In re Hart), 923 F.2d 1410 (10th Cir.1991) (per curiam), permitted such bifurcation. Knutson timely appealed.
We abated this appeal pending the Supreme Court's decision in Nobelman v. American Savings Bank, 113 S.Ct. 2106 (1993), involving the same issue--i.e. the permissibility of bifurcating an undersecured mortgage under sections 506(a) and 1322(b)(2) of the Bankruptcy Code into a secured claim equal to the fair market value of the residence and an unsecured claim equal to the balance owing to the mortgagee. A unanimous court in Nobelman held that 11 U.S.C. 1322(b)(2) "prohibits a Chapter 13 debtor from...
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