Legal News for Credit Union Managers Since 1990

Archive for January, 2011

26
Jan
2011

U.S. Supreme Court: Chapter 7 Mortgage “Strip Downs” Prohibited

This U.S. Supreme Court ruling prohibits the debtors ability to “strip- down” a secured mortgage in a Chapter 7 bankruptcy case.    A “strip-down” would allow the debtor to only be obligated to repay the fair market value of the property, even though the outstanding debt may be significantly greater than the value of the mortgaged property.   Here, in […]

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