Does the Bankruptcy code give Chapter 13 Debtors Avoidance Powers?
The issue of whether a Chapter 13 debtor may avail itself of the avoidance powers given a Trustee in 11 U.S.C. Section 544, and thus be awarded the ability to avoid the obligations accompanying unrecorded mortgages, has not been established in the District of New Jersey. Elsewhere, the law is divided on the issue of whether Chapter 13 debtors may avail themselves of the strong-arm powers of Section 544(a). The text of the Bankruptcy Code itself supports the proposition that the avoidance powers of Section 544 should not expand to Chapter 13 debtors. Section 1303 defines the rights and powers of a Chapter 13 Debtor. That section does not specifically list the strong-arm powers of Section 544 as one of the powers bestowed upon a Chapter 13 debtor. By looking elsewhere in the Code, it appears that Congress did not intend for the Courts to give Chapter 13 debtors the strong-arm powers of Section 544 either. Section 1303 specifically enumerates the powers of a Chapter 13 debtor as, “the rig
