Bank of America, N.A. v. Caulkett and the Future of Lien Stripping

Bank of America, N.A. v. Caulkett and the Future of Lien Stripping

June 25, 2015

On June 1, 2015, the United States Supreme Court unanimously held in Bank of America v. Caulkett that a debtor in a Chapter 7 bankruptcy proceeding may not void a junior mortgage lien under §506(d) when the debt owed on a senior mortgage lien exceeds the current value of the collateral. The Court relied on its prior decision in Dewsnup v. Timm, 502 U. S. 410 (1992), reasoning that if a credi­tor's claim is both secured by a lien and allowed under §502 of the Bankruptcy Code, it does not it does not come within the scope of §506(d). In this webinar, the panel will discuss the Court's decision in Caulkett, Caulkett's implications for cases under other chapters of the Bankruptcy Code, and future challenges to Dewsnup and Caulkett.

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