On November 17, 2014, the Supreme Court granted petitions for certiorari in Bank of America, N.A. v. Caulkett and Bank of America, N.A. v. Toledo-Cardona, both from the Eleventh Circuit. The two cases, which the Supreme Court consolidated to hear and decide together, present the following issue: "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."
Earlier this year, the Court declined to hear a case presenting the same issue. The parties will submit their briefs on the merits early in 2015, and the Court will hear and decide the cases later this Term
Earlier this year, the Court declined to hear a case presenting the same issue. The parties will submit their briefs on the merits early in 2015, and the Court will hear and decide the cases later this Term
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