BofA Asks Justices To Resolve Circ. Split On Ch. 7 Liens
By Erica Teichert
Law360, Washington (December 13, 2013, 6:30 PM ET) -- Bank of America NA recently asked the U.S. Supreme Court to prevent Chapter 7 debtors from completely nixing junior mortgage liens when the senior lien exceeds the property's value, claiming the Eleventh Circuit has ignored high court precedent on the issue and jeopardized Chapter 7 bankruptcy uniformity.
In a petition for certiorari filed Dec. 9, BofA claims the Eleventh Circuit has renewed its policy of allowing debtors to “strip off” junior liens when first mortgages are undersecured, even though property values may rise in the future....