#David reiss wachovia florida code#
In other words, can a Chapter 7 debtor avoid liability on a totally underwater second mortgage? This question hinges on the interpretation of one particular provision in the Bankruptcy Code 11 U.S.C. The question presented is whether a debtor in a Chapter 7 proceeding may strip off (or cancel) a junior lien on their residential property, when the value of the property at the time of the bankruptcy filing is less than the amount due under a senior mortgage. As will be further explored below, this controversy is the result of a clash between two distinct lines of cases two separate bankruptcy chapters and different provisions of the Bankruptcy Code. BACKGROUND Before delving into the Bankruptcy Court decisions that underlie the present appeals, it is necessary to fully set forth the dispute that is before this Court. For the reasons set forth below, namely because of binding Supreme Court precedent, the Court reverses the Bankruptcy Court determinations. Because the appeals are identical, they will be addressed simultaneously. § 506(d), when the outstanding balance due on a senior mortgage exceeds the fair market value of the secured property.
Presently before the Court are two distinct appeals from the Bankruptcy Court that pose precisely the same issue: whether a debtor who has filed for Chapter 7 bankruptcy may strip off the lien of a junior mortgage pursuant to 11 U.S.C. Attorney for the Appellee Joseph Contrino 117 Broadway Hicksville, NY 11801 SPATT, District Judge. 175 S Third St Suite 900 Columbus, OH 43215 By: Geoffrey J. Attorneys for the Appellant PNC Bank, N.A. Smoot 310 Old Country Road Suite 104 Garden City, NY 11530 By: Russell David Daly, Esq., Of Counsel Weltman Weinberg & Reis Co., L.P.A. Rosen Attorneys for the Appellee Sonia L. Foudy, Esq., Of Counsel Law Offices of Jonathan M.
X APPEARANCES: Rosner Nocera & Ragone, LLP Attorneys for the Appellant Wachovia Mortgage 110 Wall Street 23rd Floor New York, NY 10005 By: John P.
Appellant, -against- 11-CV-03832 (ADS) JOSEPH CONTRINO, Appellee. UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -X WACHOVIA MORTGAGE, Appellant, MEMORANDUM OF DECISION AND ORDER 11-CV-06379 (ADS) -againstSONIA L.
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