(10) This article examines the history of lien-stripping in bankruptcy, the unique position of second mortgagees on underwater properties, and the changing legal landscape pertaining to the treatment of junior liens in light of Caulkett and Bank of America, N.A.
Due to the lien-voiding language of [section]506(d), lien-stripping was common immediately following the 1978 Act, but whether lien-stripping was permissible under the code was a question for future adjudication in the courts.
(29) The Folendore court noted that this was the "common-sense" approach, and did not turn on whether a claim was "allowed" or "disallowed," as opponents of lien-stripping suggested.
(36) The tension between the competing ideas of lien survival and the fresh start has lurked within the jurisprudence of lien-stripping for decades, but the Folendore approach became progressively less popular in the years leading up to its eventual overruling by Caulkett and Waits.
7 lien-stripping, and vindicated itself as a branch of government tasked with interpreting only "what Congress said" and not with "what it thinks Congress ought to have said." (61)
Now that the Supreme Court has put lien-stripping in Ch.