Lien stripping in Chapter 7 eliminated by Supreme Court

An important decision was announced on June 1, 2015 by the United States Supreme Court.   In a unanimous decision arising from two cases in Florida, the Court ruled in Bank of America v. Caulkett that a person who files a Petition for Bankruptcy under Chapter 7 may not cancel a junior lien when the amount owed on the senior lien exceeds the value of the property.  The only condition is that the senior lien must be a secured and allowed ...

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