Struggling homeowners who file for bankruptcy will not get any help from the U.S. Supreme Court when it comes to voiding their worthless second mortgages. On Monday, the Supreme Court overturned the ruling of two lower Florida courts that allowed two bankrupt homeowners to cancel their second mortgages because their home values were no longer worth what they owed for their first mortgages. Since second mortgages only get paid after first mortgages, attorneys for both homeowners argued that the second mortgages should be voided. Bank of America objected saying the second liens should remain active on the properties because home values could rebound at some point making it possible to collect on the debt. Consumer advocates say the decision is a setback for bankrupt homeowners because it makes it more difficult to give them a true fresh start, which is the ultimate goal of bankruptcy.

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