Nemcik v. Bank of America (In re Nemcik)

Citation:
Eleventh Circuit Court of Appeals case number 14-11290
Tag(s):
Ruling:
The United States Court of Appeals for the Eleventh Circuit affirmed the decision of the United States District Court for the Middle District of Florida.
Procedural context:
The United States Bankruptcy Court for the Middle District of Florida ruled in a Chapter 7 bankruptcy case that the second mortgage which was held by Bank of America would be extinguished because the debt owed on the first mortgage exceeded the fair market value of the debtor's real property. Bank of America appealed the Bankruptcy Court's order to the United States District Court for the Middle District of Florida. The District court affirmed the Bankruptcy Court's decision, and the Bank of America appealed the decision to the Circuit Court of Appeals. The 11th Circuit held that a second mortgage can be "stripped off" in a Chapter 7 case when the first mortgage exceeds the value of the debtor's real property.
Facts:
The debtor filed Chapter 7 bankruptcy, and filed a motion to strip off Bank of America's second mortgage on the basis that the balance due on the first mortgage exceeded the value of the debtor's property. The Bankruptcy Court granted the motion, stripped off the second mortgage and held that Bank of America's claim would be treated as unsecured.
Judge(s):
United States Circuit Court of Appeals Judges Marcus, Martin and Anderson

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!

About us in numbers

3639 in the system

3523 Summarized

0 Being Processed