Law360, New York ( August 8, 2013, 12:45 PM EDT) -- On Aug. 5, 2013, the United States Court of Appeals for the Fifth Circuit affirmed a district court's reversal of a bankruptcy court order holding that a creditor with notice of a debtor's Chapter 11 proceedings was bound to the terms of a Chapter 11 plan of reorganization that eliminated the creditor's real property lien.[1] The Fifth Circuit held that the property remained encumbered by the lien, presumably upending the debtor's reorganization plan. While the decision is, at a minimum, consequential for its particular debtor, it may also portend adverse consequences for debtors in future cases where the secured creditor chooses to sit out a bankruptcy proceeding in favor of "lying in wait" strategy....