Secured debt beooming unsecured in a Ch 13

[ColoradoBell]

What if avoidance of a secured debt raises your unsecured debt above the limits?

OK, so lets say that you have $700,000 secured debt and $40,000unsecured debt, well within the 13 limits.

But because $330,000 of the secured impairs your homestead exemption that it is avoided and then moves to unsecured debt.

Are you now ineligible for Ch 13 because your new, after filing, unsecured debt bbecomes $370,000?????????????????????????????????????????? ???????

[HHM]

This is a highly debated issue?

In the "usual" chapter 13 lien strip scenario; (i.e. stripping 2nd mortgage) it does count as unsecured debt for purpose of 109 limitation.

However, it is an arguable point both ways.

[ColoradoBell]

Not sure if it makes a diff in argument, but it isn't lien stripping that would cause it...it's judgment liens. (There is also an issue of a HELOC that my X took out on his share of the house...so the attorney thought that this might be a secured mortgage on the house but an unsecured debt from me to X).
But that's more than my brain can handle, so .....what if it were just judgment liens that were secure until avoided...would they count toward max unsecured debt?

[HHM]

I have to punt on this one, I do not know the answer for certain.

One of the keys with 109 limitations is whether the debts are non-contingent and liquidated. Also, if the debts are disputed in some way, that can help get around the 109 limitations.