Bank of America v. Caulkett | SCOTUS PETITION - Whether, under Section 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
A response to the petition is due June 27.
IN THE Supreme Court of the United States
BANK OF AMERICA, N.A., Petitioner, v. DAVID B. CAULKETT, Respondent.ON PETITION FOR A WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT PETITION FOR A WRIT OF CERTIORARI
QUESTION PRESENTED Section 506(d) of the Bankruptcy Code provides in relevant part 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.” In Dewsnup v. Timm, 502 U.S. 410 (1992), this Court held that section 506(d) does not permit a chapter 7 debtor to “strip down” a mortgage lien to the current value of the collateral. The question presented in this case, on which the courts of appeals are divided, is whether section 506(d) permits a chapter 7 debtor to “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. [..]