Bank of America, N.A. v. Caulkett
Bank of Am., N.A. v. Caulkett, 575 U.S. 790 (2015)
- Court
- Supreme Court of the United States
- Decided
- 2015-06-01
- Docket
- 13-1421
What happened
Chapter 7 debtors owed more on their first mortgages than their homes were worth and asked to void the wholly underwater second mortgages.
What the court decided
The Supreme Court held that a Chapter 7 debtor may not void a junior mortgage under § 506(d) even when the senior mortgage exceeds the home's value.
Why it may matter to you
If removing a second mortgage is your goal, Chapter 13 (not Chapter 7) is the path courts have allowed (see Bartee).
Why it might not apply
Limited to Chapter 7 and § 506(d); Chapter 13 treats a wholly unsecured junior lien differently.
Most useful when
- You have a second mortgage with no equity behind it and are considering Chapter 7
How to cite it
The full citation for the first time you mention it, a short form for later, and a sample sentence you can adapt.
Bank of Am., N.A. v. Caulkett, 575 U.S. 790 (2015)Short formCaulkett, 575 U.S. 790Draft — check it with free legal aid before you file or say it in court.
In Bank of Am., N.A. v. Caulkett, 575 U.S. 790 (2015), the court held that a Chapter 7 debtor may not void a wholly underwater junior mortgage under § 506(d). Here, [say in one sentence what happened in your case]
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Related cases
- Homeowner lostBinding
Nobelman v. American Savings Bank
508 U.S. 324 · Decided 1993
The Nobelmans owed more on the loan for their Dallas, Texas condominium than it was worth and asked to reduce the mortgage to the home's value in Chapter 13.
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Dewsnup v. Timm
502 U.S. 410 · Decided 1992
Ms. Dewsnup, in Chapter 7, asked to "strip down" a lien on her land to the land's current, lower value.
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Bartee v. Tara Colony Homeowners Ass'n
212 F.3d 277 · Decided 2000
Mr. Bartee filed Chapter 13. His home was worth less than the first mortgage, so the HOA's junior lien had no value behind it. The lower courts would not let him treat it as unsecured.
Read the case