Nobelman v. American Savings Bank
United States Supreme Court
508 U.S. 324 (1993)
- Written by Denise McGimsey, JD
Facts
Leonard and Harriet Nobelman (plaintiffs) purchased their home in Texas with a $68,250 loan from American Savings Bank (American Savings) (defendant). The loan was evidenced by an adjustable-rate note and its payment secured by the mortgaged property. The Nobelmans fell behind in their payments and filed a Chapter 13 bankruptcy petition. At the time of the filing, they owed $71,335 to American Savings but the property was valued at only $23,500. The Nobelmans proposed a plan under which they would make mortgage payments to American Savings only up to the fair market value of the residence. Pursuant to 11 U.S.C. § 506(a), the Nobelmans argued that the bank debt was secured only to the amount of $23,500; the difference between that and the balance of the loan obligation was alleged to be an unsecured claim. Under the Nobelmans’ proposed plan, unsecured claimants would recover nothing. American Savings and the Chapter 13 trustee (defendant) opposed the Nobelmans’ proposal. The bankruptcy court withheld confirmation of the Nobelmans’ plan. The district court and court of appeals affirmed. The Nobelmans petitioned the Supreme Court for certiorari.
Rule of Law
Issue
Holding and Reasoning (Thomas, J.)
Concurrence (Stevens, J.)
What to do next…
Here's why 787,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,200 briefs, keyed to 988 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
