Chapter 11 Claim: Nonrecourse + No Equity = Disallowed Claim… Or May...

Chapter 11 Claim: Nonrecourse + No Equity = Disallowed Claim… Or Maybe Not
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A chapter 11 debtor sought to disallow the claim of a second mortgagee that held a nonrecourse loan that was totally underwater (i.e., the property was worth less than the first mortgage). The bankruptcy and district courts held that the claim should ...