Supreme Court Docket Report - November 17, 2014

On November 17, 2014, the Supreme Court granted certiorari in and consolidated two cases of interest to the business community:

Bankruptcy—Voidability Of Underwater Mortgage Liens

Section 506 of the Bankruptcy Code addresses the extent to which a creditor's claim based on a lien on the debtor's property is secured. Section 506(a) provides in relevant part that a creditor's claim is a "secured claim to the extent of the value of such creditor's interest in the estate's interest in such property"—in other words, a secured claim for an amount equal to the present value of the collateral—and is an "unsecured claim" for the remainder. Section 506(d) provides in relevant part that, "[t]o the extent that a lien secures a claim against the debtor that is not an allowed secured claim, such lien is void."