Nobelman v. American Savings Bank
Nobelman v. Am. Sav. Bank, 508 U.S. 324 (1993)
- Court
- Supreme Court of the United States
- Decided
- 1993-06-01
- Docket
- 92-641
What happened
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.
What the court decided
The Supreme Court held that Chapter 13 does not allow a debtor to reduce ("cram down") a mortgage secured only by the debtor's principal residence to the home's value.
Why it may matter to you
Know what Chapter 13 can and cannot do: it can let you catch up on missed payments over time, but it usually cannot shrink the first mortgage.
Why it might not apply
A wholly unsecured junior lien is treated differently (Bartee in the Fifth Circuit). The right to cure arrears over the plan is untouched.
Most useful when
- You owe more on your first mortgage than the home is worth and are considering Chapter 13
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.
Nobelman v. Am. Sav. Bank, 508 U.S. 324 (1993)Short formNobelman, 508 U.S. 324Draft — check it with free legal aid before you file or say it in court.
In Nobelman v. Am. Sav. Bank, 508 U.S. 324 (1993), the court held that a Chapter 13 debtor may not reduce a mortgage secured only by the principal residence to the fair market value of the home. Here, [say in one sentence what happened in your case]
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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.
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