This week the United States Supreme Court heard oral arguments in a case involving stripping off a wholly unsecured junior mortgage in a chapter 7 case. There has been a split amongst the federal circuits, with some permitting it, but most not permitting it. There is...
When Legal Matters Become Personal
Lien Stripping
Supreme Court to hear cases regarding chapter 7 lien stripping
The Supreme Court granted certiorari in two Chapter 7 lien strip cases today. Cases are Bank of America v Toledo-Cardona and Bank of America v Caulkett. In the 11th Judicial Circuit, court have permitted chapter 7 debtors to strip wholly unsecured junior mortgages....
8th Circuit Court of Appeals takes “Lien Stripping” case under advisement
The 8th Circuit of Appeals heard arguments on Wednesday March 12 in a case involving whether wholly unsecured junior second mortgages can be stripped in chapter 13 bankruptcy. A ruling will be issued “in due course,” which will likely be 1-3 months. The case is...
Extension of Sheriff’s Sale of Foreclosure Under State Law
The first thing I ask people when they are facing foreclosure, is whether they’ve tried to get a loan modification. A prior blog entry suggests how to go about that. Often, people have assumed that loan modifications are handed out on a silver platter, but it’s not...
8th Circuit dismisses appeal challenging chapter 13 lien strip
A long-awaited decision was issued last week by the 8th Circuit Court of Appeals, dismissing a chapter 13 trustee’s appeal of a decision by the 8th Circuit Bankruptcy Appellate Panel, which had noted that the concept of lien stripping is noncontroversial and has been...