Stripping Liens Down in Florida Bankruptcy Courts
- October 20, 2015
- Thomas Adam
- Bankruptcy
Stripping down in court is typically disfavored and a quick way to get kicked out. But, as with all things legal, there’s an exception for a different kind of stripping: stripping liens. Stripping Liens Basics Stripping Liens, authorized by 11 U.S.C. § 506, conceptually divides certain claims secured by liens on property into two claims: an unsecured claim and a secured claim. For example, let’s say Creditor A has loaned a debtor $100,000 and secured that loan with a mortgage on propert[...]