Section 506(d)

U.S. Supreme Court Rejects Chapter 7 Debtor’s Stripping of Junior Liens

06/02/15

Holding: 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 if the creditor’s claim is both secured by a lien and allowed under § 502 of the Bankruptcy Code.

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