Bartee v. Tara Colony Homeowners Ass'n
Bartee v. Tara Colony Homeowners Ass'n (In re Bartee), 212 F.3d 277 (5th Cir. 2000)
- Court
- United States Court of Appeals for the Fifth Circuit
- Decided
- 2000-05-15
- Docket
- 99-20463
What happened
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.
What the court decided
The Fifth Circuit held that Chapter 13's anti-modification protection does not cover a junior lien that is wholly unsecured — not supported by any value in the home — so the plan may treat it as unsecured.
Why it may matter to you
In Chapter 13, a second mortgage or HOA lien with no equity behind it may be reduced to unsecured debt — sometimes a big relief. Binding on federal courts in Texas.
Why it might not apply
Only if the lien is WHOLLY unsecured; if even a dollar of value supports it, Nobelman protects it. Chapter 7 is different (Caulkett). Valuation is fought over — get a bankruptcy lawyer.
Most useful when
- Your first mortgage is more than your home is worth, and you also owe a second lien or HOA lien
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.
Bartee v. Tara Colony Homeowners Ass'n (In re Bartee), 212 F.3d 277 (5th Cir. 2000)Short formBartee, 212 F.3d 277Draft — check it with free legal aid before you file or say it in court.
In Bartee v. Tara Colony Homeowners Ass'n (In re Bartee), 212 F.3d 277 (5th Cir. 2000), the court held that Chapter 13's anti-modification rule does not protect a junior lienholder whose lien is not supported by any value in the debtor's home. 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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Till v. SCS Credit Corp.
541 U.S. 465 · Decided 2004
The Tills proposed a Chapter 13 plan paying their truck lender at 9.5% — the prime rate plus a risk adjustment. The lender wanted its 21% contract rate.
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Brooks v. Northglen Ass'n
141 S.W.3d 158 · Decided 2004
Property owners challenged their HOA's attempt to raise and accumulate annual assessments and add late fees.
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