In the case of Curtis Reed Johnson v. Home State Bank, 1990, the U.S Supreme Court was tasked with determining whether a mortgage constitutes a "claim" that can be included in Chapter 13 bankruptcy proceedings. The issue arose after Johnson filed for Chapter 7 bankruptcy and had his personal liability on his home mortgage discharged but not the lien on his property. He then attempted to file for Chapter 13 bankruptcy to address this remaining debt. The bank argued that since there was no longer any personal liability following the discharge under Chapter 7, there could be no claim as defined by section §101(5) of the Bankruptcy Code. The Supreme Court ruled in favor of Johnson stating that a mortgage is indeed a 'claim' even if personal liability has been discharged under chapter seven because it represents an obligation of the debtor's estate; hence it can be addressed within subsequent chapter thirteen proceedings. This decision clarified how different types of bankruptcies interact with each other and provided guidance for individuals seeking relief from both their personal liabilities and liens against their properties through sequential filings under different chapters.

In the dissenting opinion for Curtis Reed Johnson v. Home State Bank, Justice Marshall argued that a debtor's personal liability on a mortgage note is not extinguished by Chapter 7 bankruptcy discharge and therefore cannot be included in a subsequent Chapter 13 repayment plan. He contended that the majority misinterpreted the language of both chapters of the Bankruptcy Code and failed to consider their different purposes: while Chapter 7 aims at giving debtors a fresh start by discharging personal liabilities, Chapter 13 allows them to repay their debts over time under court protection. According to him, allowing discharged debts from previous bankruptcies into new repayment plans would undermine these objectives and create confusion about what constitutes 'debt' under each chapter. Furthermore, he expressed concern that this ruling could encourage strategic behavior among debtors who might file for multiple bankruptcies just to take advantage of this loophole.