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Supreme Court Denies Certiorari to Hear Bank of America’s Challenge to Eleventh Circuit’s Rule Regarding Lien Stripping in Chapter 7 Bankruptcy Cases

by Daniel N. French
Burr & Forman LLP - Atlanta Office

May 15, 2014

Previously published on May 2014

The United States Supreme Court recently denied certiorari to an Eleventh Circuit appeal which would have addressed the issue of whether section 506(d) of the Bankruptcy Code permits a chapter 7 debt to “strip off” a wholly unsecured junior lien in Bank of America, N.A. v. Sinkfield. As a result, wholly unsecured junior creditors will continue to suffer the harsh consequence of having its junior lien completely “stripped off” in Eleventh Circuit bankruptcy cases, despite other Circuits around the country holding to the contrary.


The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.

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