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NOBELMAN v. AMERICAN SAVINGS BANK

No. 92-641.

508 U.S. 324 (1993)

NOBELMAN et ux. v. AMERICAN SAVINGS BANK ET AL.

United States Supreme Court.

Decided June 1, 1993.

Attorney(s) appearing for the Case

Philip I. Palmer, Jr., argued the cause for petitioners. With him on the brief was Rosemary J. Zyne.

Michael J. Schroeder argued the cause for respondents and filed a brief for respondent American Savings Bank, F. A. Molly W. Bartholow and Charles L. Kennon III filed a brief for respondent Standing Chapter 13 Trustee.*

Thomas, J., delivered the opinion for a unanimous Court. Stevens, J., filed a concurring opinion, p. 332.

Justice Thomas, delivered the opinion of the Court.

This case focuses on the interplay between two provisions of the Bankruptcy Code. The question is whether § 1322(b)(2) prohibits a Chapter 13 debtor from relying on § 506(a) to reduce an under secured homestead mortgage to the fair market value of the mortgaged residence. We conclude that it does and therefore affirm the judgment of the Court of Appeals.

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