Bankruptcy Code | Law Firm Newswire

Brandon, FL (Law Firm Newswire) September 3, 2015 – In a blow to struggling homeowners, the U.S. Supreme Court prohibited the voiding of underwater second mortgages in Chapter 7 bankruptcy. Previously, homeowners filing Chapter 7 bankruptcy in some states could seek to “strip off” second liens from their homes in cases where a drop in the house’s value had resulted in the second lien having no claim on equity. In Bank of America v. Caulkett, however, the Justices ruled unanimously that Supreme Court precedent required them to bring an end to the practice. Bankruptcy attorney O. Reginald Osenton said the […]

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