After the Court of Appeals allowed [homeowners] to strip their 2nd mortgage in a Chapter 7... I became hopeful that I may be able to do the same for my clients. However, the ruling from the Supreme Court is clear. That is only an option in a Chapter 13.
Queens, NY (PRWEB) July 01, 2015
On Monday, June 1, 2015 Reuters reported on the new U.S. Supreme Court ruling in cases Bank of America v. Caulkett and Bank of America v. Toledo-Cardona (Nos. 13-1421 and 14-163.) that overturned the prior 11th U.S. Circuit Court of Appeals ruling. The Appellate court had ruled in favor of allowing the homeowners to void their second mortgage in a Chapter 7 bankruptcy proceeding. However, Bank of America argued that the decision of the Circuit Court of Appeals was different than other appeals courts around the country.
Queens Bankruptcy Attorney Bruce Feinstein, Esq. stated, "After the Court of Appeals allowed David Caulkett and Edelmiro Toledo-Cardona to strip of their second mortgage on their underwater home I became hopeful that I may be able to do the same for my clients in Chapter 7 proceedings, but the new ruling from the Supreme Court makes it clear that this is still not an option under Chapter 7 Bankruptcy. The ruling does not affect Chapter 13 debtors, and voiding second mortgages remains an option for Chapter 13 debtors. We continue to use Chapter 13 to lien strip 2nd mortgages that are underwater with great success".
Bruce Feinstein, Esq., who has over 17 years of experience in the field continues to advise his clients that if the current value of their home is less than the debt on their first mortgage, voiding their second mortgage under the protections of the Bankruptcy Code while not possible under Chapter 7, remains a viable option under Chapter 13.
The Law Offices of Bruce Feinstein has nearly two decades of experience in bankruptcy law, helping clients and families resolve their issues and move forward with their lives. If your home is underwater visit bfeinsteinesq.com for more information or call (718) 514-9770 to reach the New York office.