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 lien...is 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 More…Tags: Bankruptcy, Homestead, Mortgage, Chapter 7
On February 26, 2015, the U.S. Bankruptcy Court for the Western District of Wisconsin sustained a chapter 7 panel trustee’s objection to debtors’ claim of exemptions under Wisconsin’s homestead exemption in two parcels of real estate in In re Minor, Bankruptcy Case No. 14-13002, Feb. 26, 2015.
Read More…Tags: Bankruptcy, Homestead, Exemptions
