• Supreme Court Denies Certiorari to Hear Bank of America’s Challenge to Eleventh Circuit’s Rule Regarding Lien Stripping in Chapter 7 Bankruptcy Cases
  • May 15, 2014 | Author: Daniel N. French
  • Law Firm: Burr & Forman LLP - Atlanta Office
  • 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.