By Emma Whitford (Nov 8, 2021, 6:34 p.m. EST) – The United States Supreme Court on Monday refused to uphold a petition from a North Carolina couple seeking to overturn their 1992 ruling that homeowners failed cannot reduce a partially submerged mortgage through the Bankruptcy Code.
Appealing from the Fourth Circuit, owners Jesus Vasquez Jr. and Penney Leigh Vasquez had targeted the high court decision in Dewsnup v. Timm, arguing that the judges misread a key section of the Bankruptcy Code, 506 (d), which explains the circumstances in which a privilege is void.
According to the couple, the section makes it clear that any lien amount exceeding the value of a property is not an “authorized secured debt”, …
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