In re Gutierrez

TENTATIVE RULING THAT PETITION DATE IS THE APPROPRIATE DATE TO DETERMINE IF JUNIOR LIENS ARE SUBJECT TO MODIFICATION

The debtor has filed a motion to avoid two junior liens on property that he claims as his principal residence (the “Motion”). A hearing was held on July 31, 2013 and continued several times. Appearances were as noted on the record.

A separate written memorandum (dkt. 34) (the “Valuation Memorandum”) addresses the value of the subject property as of two alternative dates. As of October of 2013, the tentative value is $405,000, which apparently is not low enough to avoid either junior hen. Alternatively, if the governing date is roughly a year ago on November 27, 2012, when the debtor filed his bankruptcy petition (the “Petition Date”), then the Valuation Memorandum tentatively values the property at $370,000, which apparently is low enough to avoid the most junior lien. The appropriate valuation date is a difficult question, but the Valuation Memorandum presumes that the appropriate date for valuation is the more current date: October of 2013.

Based on further research and reflection, and subject to briefing as set forth below and argument at the time and date set…