3 Cir: may not reduce "the amount of a tax lien to the value of the collateral securing the claim.”

Geisler v. IRS, A Chapter 7 debtor appealed dismissal of his adversary proceeding against the IRS. 

In his proceedings, he argued that the Service only had a claim to the extent of his owned property and absent an additional ground, excess should be void. The Court disagreed. 

Based its opinion on Dewsnup v. Timm, 502 U.S. 410, 419 (1992), it held that it was precluded in a Chapter 7 case from “reducing the amount of a tax lien to the value of the collateral securing the claim.”

Geisler v. IRS, 2016 U.S. App. LEXIS 14669 (3rd Cir. Aug. 10, 2016)