Can I strip my second mortgage in a chapter 13 if my first mortgage exceeds the value of my home? - Bankruptcy Law Questions and Answers- LawQA.com

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Can I strip my second mortgage in a chapter 13 if my first mortgage exceeds the value of my home?

My 1st mortgage exceeds the value of my home. Can I strip my second mortgage and treat it as unsecured? What statute do I cite?

Answer By Alan D. Walton
Breckenridge and Walton
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Yes - you need an attorney.

Answer Applies to: Michigan
Replied: 9/25/2011

Answer By Kevin Heupel
Heupel Law
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Yes, you can remove a second mortgage if the value of the home is less than the balance of the first mortgage under section 506.

Answer Applies to: Colorado
Replied: 9/16/2011

Answer By Dan Wilson
Dan Wilson Bankruptcy
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No. Lien-stripping is only possible if your 2nd mortgage is completely unsecured.

Answer Applies to: Colorado
Replied: 9/11/2011

Answer By Eric Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis
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A second lien, junior mortgage or other subordinate lien that is unsecured in terms of equity at the time of filing bankruptcy can be stripped. Stripping a lien must be done by motion.

Answer Applies to: Indiana
Replied: 9/8/2011

Answer By David VanDyke
Bird & VanDyke, Inc.
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Yes. Absolutely. This is one of the reasons why a chapter 13 works so well. Stripping the lien involves filing a motion with the court to value collateral and properly including this in your plan. I wouldn't try this on my own. You need to see an attorney about this.

Answer Applies to: California
Replied: 9/8/2011

Answer By Mengjun Qiu
The Law Offices of Kristy Qiu
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Yes, you need to go to the court's website and get the motion to value. You will also need an appraiser's report and possibly hire an expert for the motion hearing. From the question, I take it that you don't know the law yourself that well. In that case, let me give you a piece of honest advice, over 90% of pro se chapter 13 cases get dismissed because debtors don't know what to do and the trustee won't care enough to walk you through the case, so they dismiss it. Find an attorney to help you.

Answer Applies to: Florida
Replied: 9/8/2011

Braunstein Law, PC
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Generally, if the value of a home is less than the balance on the first mortgage, the second mortgage will be treated as wholly unsecured and can potentially be stripped in a Chapter 13. You will want to consult with an attorney regarding the exact procedures for lien stripping in your district.

Answer Applies to: Oregon
Replied: 9/7/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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Yes you can do that. Some courts do it by motion and others by what is called an adversary proceeding. It is not about what case you cite. It is about the procedure. That is what is important.

Answer Applies to: California
Replied: 9/7/2011

Charles Schneider, P.C.
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No. Not if it is your residence

Answer Applies to: Michigan
Replied: 9/7/2011

Answer By Michael Johnson
Law Office of Michael Johnson
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Yes it can be stripped and yes it will be treated as an unsecured. You should consult with an attonrey to discuss the facts of your case.

Answer Applies to: Florida
Replied: 9/7/2011

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