Jesus Vasquez, Jr., et ux. v. Wilmington Savings Fund Society, FSB, as Trustee of Stanwich Mortgage Trust F

Section 506(a)(1) of the Bankruptcy Code states that “[a]n allowed claim of a creditor secured by a lien * * * is a secured claim to the extent of the value of such creditor’s interest in the estate’s interest in such property, * * * and is an unsecured claim to the extent that the value of such creditor’s interest * * * is less than the amount of such allowed claim.” Section 506(d) states, in relevant part, “To the extent that a lien secures a claim against the debtor that is not an allowed secured claim, such lien is void.” Under a plain reading of Sections 506(a)(1) and 506(d), the amount of a lien that exceeds the value of a debtor’s property is not an allowed secured claim, and is, therefore, void. However, this natural reading of Section 506(d) has been foreclosed by Dewsnup v. Timm, 502 U.S. 410 (1992). See Bank of America, N.A. v. Caulkett, 575 U.S. 790, 794 (2015). The sole question presented is whether Dewsnup v. Timm, 502 U.S. 410 (1992), should be overruled.