On , Appellants registered having Section thirteen case of bankruptcy rescue
During the time Taylor Bean made the mortgage, Appellants’ mobile home is set up to the acres and you can Appellants had no aim of swinging the cellular domestic about residential property. (Id. at -19.) The fresh new tires and axles attached to the halves of mobile domestic have been eliminated whenever Appellants went the fresh cellular household onto the assets. (Id, on 41:8-nine.) Furthermore, the tongues had been eliminated. (Id. during the twenty-seven:6-eight.) Appellants centered an effective septic system and you will a water really, and once Taylor Bean made the loan, Appellants constructed an effective mortared cinderblock basis up to all four edges away from their property. (Id. from the 37:7-38:9.) Appellants and additionally hung exterior ac units (id. at 42:8-9), and additionally electricity services, (id. at the -25).
II. Personal bankruptcy Process
(Tr. 5:23-twenty-five.) At the time of new submitting, Bobby try obligated to Appellee for a loan safeguarded of the Appellants’ acres and improvements, and Appellants was basically as you obligated to the bank away from Danielsville for that loan covered by the Appellants’ cellular household and you can an automobile and you may pickup truck belonging to Bobby. On , Appellee submitted their secured proof of claim toward bankruptcy proceeding courtroom regarding quantity of $104,, representing the primary and you will pre-petition arrearage due of the Appellants.
Appellants’ very first advised package given, during loans Silverthorne CO the relevant you to, that “[confirmation in the plan often extinguish next lien into the [Appellants’] home kept from the [the financial institution out of Danielsville] as a result of the insufficient worth to support brand new advertised lien
Appellants offered and you will recorded its earliest proposed Section thirteen package, hence offered to cure the fresh new arrearage due to their duty by and make money courtesy their Chapter 13 package. Typical article-petition, monthly installments into the responsibility would be to be made so you can Appellee in person. (Id. during the six:1-5.) Appellants proceeded for a few months following the its filing and then make their regular, post-petition, monthly installments to Appellee. ” (Part thirteen Bundle, .) Appellee did not target so you can Appellants’ first suggested package.
With the , Appellants gave observe of one’s proposed modification of its Part 13 plan before verification. (Select Ex. P-3 to Tr., Find out-of Mot. for Modification out-of Bundle Just before Verification.) In the advised changed package, Appellants needed so you’re able to bifurcate Appellee’s allege within protected and you will unsecured part. (See Ex. P-seven so you can Tr., Chapter 13 Plan, [hereinafter Altered Part 13 Package].) Under the Changed Section 13 Plan, Appellants was to shell out Appellee their secure count. New unsecured portion of Appellee’s allege was to be paid professional rata the rest of Appellants’ unsecured financial institutions. Appellants’ Changed Section 13 Bundle provided for the full percentage off the obligation due by Appellants on the Bank regarding Danielsville and covered by the cellular family, as well as the car together with pickup truck belonging to Bobby. Appellants’ Altered Part 13 Package don’t bring that Appellee’s safety action is actually *922 to-be met or extinguished upon the culmination of package payments. (Id.) Appellee didn’t target so you’re able to Appellants’ Modified Part 13 Package.
Into , this new personal bankruptcy legal entered your order guaranteeing Appellants’ Changed Section 13 Plan. (Ex lover. P-six so you can Tr., Purchase Verifying Bundle.) Payments within the Part thirteen package was indeed complete by Appellants inside the 2005. (Tr. 7:1-2.) On , the bank out of Danielsville put out the protection need for Appellants’ mobile household while the almost every other equity securing their financial obligation. On , the fresh new bankruptcy proceeding court joined an order giving Appellants’ Chapter 13 launch. A last decree was also joined, closure Appellants’ Part 13 case. Adopting the bill of their discharge, Appellants produced multiple requests away from Appellee so it mark the security action into the Appellants’ houses satisfied. Although not, Appellee rejected. (Id. from the seven:3-8.) Appellants’ Section thirteen circumstances was reopened of the order of the personal bankruptcy judge into , Appellants registered an adversary proceeding throughout the bankruptcy legal. (Id. on seven:8.)
