Eleventh Circuit Holds Debtor, Ineligible For Discharge, Can Strip Junior Liens On Property Worth Less Than Senior Lien

By Larry Foyle, Kass Shuler, P.A., Tampa, Florida

On June 18, 2014, the 11th Circuit Court of Appeals decided the Scantling case, Wells Fargo Bank, N.A. v. Scantling, ___ F.3d ___, 2013 WL 2750349. The Court answered the Chapter 20 lien strip question that had previously vexed the lower courts, and had created division and district splits within the 11th Circuit. The Scantling case was ripe for appeal as a direct certification from the bankruptcy court to seek and resolve the decisional splits. The Panel held that a discharge . . .

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