Failure of Secured Creditor to File a Timely Proof of Claim in a Chapter 13 does NOT void the lien (8th Cir. Published)

I thought it was common sense that you are unable to void a secured creditor's lien if they file a late proof of claim.  Moreover, there is no requirement that the secured creditor even file a claim.  Despite that, the Debtors filed bankruptcy and the secured creditor filed a proof of claim 8 months after the deadline.  The Debtors did not contest the validity of the debt or lien but asserted that the claim was not timely and could be avoided under the plain language of 506(d).  The Eighth Circuit in a short opinion rejected the Debtor's argument and affirmed the judgment of the Bankruptcy Court and the BAP.

In re Shelton 8th Cir. Published