Recommended Citation
Jane K. Winn, Lien Stripping after Nobelman, 27 Loy. L. A. L. Rev. 541 (1994), https://digitalcommons.law.uw.edu/faculty-articles/1159
Publication Title
Loyola of Los Angeles Law Review
Document Type
Article
Abstract
This Article first examines the Supreme Court's holding in Nobelman. Part II reviews the various statutory interpretations and bankruptcy policy arguments marshaled by both debtors and creditors regarding the permissibility of stripping home mortgages under the Bankruptcy Code. Part III discusses the issue of lien stripping as addressed in the bankruptcy reform legislation introduced in Congress in 1992 and 1993. Part IV of this Article reviews other similar forms of debtor relief in order to evaluate creditors' claims that lien stripping would disrupt credit markets and impair the free flow of credit to borrowers. The forms of debtor relief considered include state antideficiency laws, stripping down real property liens in Chapter 11 and 12 bankruptcy proceedings, and stripping down other liens on real and personal property in Chapter 13 proceedings.