Tuesday, November 18, 2014

Petition for Writ of Certiorari Granted on Chapter 7 Lien Stripping Issue

Most commentators suggest that the days of lien stripping in chapter 7 bankruptcy cases is soon to end. Yesterday the U.S. Supreme Court granted Bank of America's writ of certiorari which will allow it to address the issue of lien stripping in chapter 7 cases. 

The numerous recent appellate decisions out of the 11th Circuit have been suggesting that the issue would be considered by the 11th Circuit en banc or by the Supreme Court. The 11th Circuit Courts were forced by the "prior precedent rule" to apply its Foledore decision, which allowed lien stripping in chapter 7.  Under the "prior precedent rule", the 11th Circuit held that the Supreme Court's landmark decision in Dewsnup was not explicit enough to overrule Folendore. 

The Supreme Court's Docket

Docketed: August 13, 2014 No. 14-163
Title: Bank of America, N.A., Petitioner v. Edelmiro Toledo-Cardona
Lower Court: United States Court of Appeals for the Eleventh Circuit, Case Nos. (13-15855)
Decision Date: May 5, 2014

~~~Date~~~ ~~~~~~~Proceedings  and  Orders~~~~~~~~~~~~~~~~~~~~~
Aug 13 2014Petition for a writ of certiorari filed. (Response due September 12, 2014)
Aug 25 2014Order extending time to file response to petition to and including October 14, 2014.
Oct 6 2014Brief of respondent Edelmiro Toledo-Cardona in opposition filed.
Oct 21 2014Reply of petitioner Bank of America, N.A. filed.
Oct 22 2014DISTRIBUTED for Conference of November 7, 2014.
Nov 10 2014DISTRIBUTED for Conference of November 14, 2014.
Nov 17 2014Petition GRANTED The petition for a writ of certiorari in No. 13-1421 is granted. The cases are consolidated and a total of one hour is allotted for oral argument.
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