Stripping of Unsecured Second Mortgages in Chapter 7 Bankruptcies in...

04/06/15

Stripping of Unsecured Second Mortgages in Chapter 7 Bankruptcies in the ...
JD Supra (press release)
Since its 1989 opinion in Folendore v. Small Business Admin., the Eleventh Circuit Court of Appeals has allowed debtors to completely strip off and void wholly unsecured junior liens in Chapter 7 bankruptcies under Section 506(d) of the Bankruptcy Code.