United states bankruptcy court

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UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK

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In re: Chapter

Case No. __-______ ( )

Debtor(s).

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ORDER VOIDING JUNIOR MORTGAGE LIEN OF [NAME OF CREDITOR]

[and Reclassifying Claim No. , if any]

Upon the motion, dated ________ __, 20__ (the “Motion”), of the above debtor(s) (the “Debtor(s)”), for an order declaring that the junior mortgage lien held by [INSERT NAME OF CREDITOR] (with any subsequent successor or assign, “Creditor”) on the Debtor(s)’s property located at [INSERT ADDRESS OF THE PROPERTY SERVING AS COLLATERAL; TAX MAP DESIGNATION] (the “Property”) is void as being wholly unsecured under 11 U.S.C. §§ 506(a) and 1322, and reclassifying the secured claim of the Creditor in this case based on such lien [Identify claims by claim No., if any] as an unsecured claim; and it appearing that due and sufficient notice of the Motion and the hearing thereon was provided; [and the Creditor having opposed the relief requested in the Motion (the “Objection”);] [and there being no opposition to the requested relief;] and upon the record of the _______ , 20__ hearing held by the Court on the Motion; and, after due deliberation, it appearing that the amount of the senior debt secured by the Property exceeds the value of the Property and that there is no collateral value in the Property to secure the Debtor(s)’s obligations to the Creditor under the Creditor’s junior mortgage on the Property; and good and sufficient cause appearing, it is hereby ORDERED that

1. The Motion is granted.

2. Any claim filed by Creditor against the Debtor(s) and the Debtor(s)’s estate in this case based on its junior lien on the Property [Identify claim by claim No. , if any] shall be treated as wholly unsecured.

3. The wholly unsecured lien of the Creditor’s junior mortgage on the Property is declared void (see In re Pond, 252 F.3d 122 (2d Cir. 2001)), subject to the Creditor’s rights under 11 U.S.C. § 363(k) and its right to such lien’s reinstatement upon any dismissal or conversion of the Debtor(s)’s chapter 13 case prior to the performance of the Debtor(s)’s chapter 13 plan voiding such mortgage under 11 U.S.C. § 1322(b)(2).

4. The Clerk of ___________ County, New York shall mark on its records that the Creditor’s junior mortgage on the Property [appearing at Liber __ and Page No. __ ] is void pursuant to Bankruptcy Court Order, subject to the lien’s reinstatement upon any dismissal or conversion of the Debtor(s)’s chapter 13 case prior to the performance of the Debtor(s)’s chapter 13 plan voiding such mortgage under 11 U.S.C. § 1322(b)(2); provided, that the Debtor(s) may in the alternative record a copy of this Order with the Clerk of the County of ____________ , New York to provide such notice.

5. Notwithstanding any other provision of this Order, this Order shall remain effective if this case is converted to a case under chapter 11.

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