Lien stripping

Lien Stripping in Bankruptcy

10/17/16

On October 11, 2016, Chief Judge Brendan L. Shannon of the Delaware Bankruptcy Court issued a letter ruling in which he opined on the appropriate valuation of a fist lien.  A copy of the Opinion is available here.

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Differences in Lien Stripping between Chapter 7 and 13

06/15/15

In a much awaited decision, the United States Supreme Court recently ruled in favor of Bank of America and held that "underwater" mortgages are not avoidable in a chapter 7 liquidation case. This ruling reversed the decision of the 11th Circuit Court of Appeals located in Atlanta, which covers an area in the southeastern United States. Since many other Courts in other parts of the United States have held that "underwater" mortgages are not avoidable in chapter 7 cases for many years, this new decision does not change the practice in many parts of the country.

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Supreme Court Extends Dewsnup But Suggests They Really Don't Care for the Decision

06/02/15
The Supreme Court extended the holding of Dewsnup v. Timm, 502 U.S. 410 (1992) to a fully unsecured junior lien in a chapter 7 case.    However, the Court suggested in a footnote that they are ready to reconsider the underlying precedent.    This suggests that the Petitioners may have lost because they were not bold enough in challenging Dewsnup.   Bank of America v. Caulkett, No.
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What is "Lien Stripping" and Can I Use it to Reduce my Mortgage Payments

12/20/10

mortgage lien stripWith the decline in Atlanta area housing values, a seldom used bankruptcy technique has taken on new life.  The technique is called "lien stripping" and it arises from Bankruptcy Code Section 50

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