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Term
Issue

Whether, under § 506(d) of the Bankruptcy Code, which provides that “[t]o the extent that a lien secures a claim against the debtor that is not an allowed secured claim, such lien is void,” a chapter 7 debtor may “strip off” a junior mortgage lien in its entirety when the outstanding debt owed to a senior lienholder exceeds the current value of the collateral.

Opinion

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.

http://www.supremecourt.gov/opinions/14pdf/13-1421_p8k0.pdf

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Oral Arguments Date
Transcript
http://www.supremecourt.gov/oral_arguments/argument_transcripts/13-1421_986b.pdf
Certiorari Granted Date
Petitions
Petition for a writ of certiorari
Brief of respondent Edelmiro Toledo-Cardona
Reply of petitioner Bank of America
Brief of petitioner Bank of America, N.A.