Chapter 7 | Wisconsin Bankruptcy Law Blog | Bankruptcy Lawyer | Tax Attorney | Wausau | Krautkramer & Block LLC Law Firm

United States Supreme Court Reverses the 11th Circuit Denying Strip Off For Underwater Junior Mortgage Liens in Chapter 7 Bankruptcies

On June 1, 2015, the United States Supreme Court in Bank of America v. Caulkett 135 S.Ct. 1995 (2015) reversed the Court of Appeals for the Eleventh Circuit's decisions in two bankruptcy cases, In re David Caulkett and In re Edelmiro Toledo–Cardona. In those cases, the Eleventh Circuit held that "[A] wholly unsecured junior voidable under section 506(d) [in a chapter 7 bankruptcy]." Each debtor had two mortgage liens on their respective homes, but the amount of the senior mortgage lien was greater than each home's current market value. This made the each bank's junior mortgage liens completely underwater. Read Moreā€¦
© 2015 Krautkramer & Block LLC Law Firm Contact Me