The second mortgage (or other junior lien) you strip is treated as a nonpriority unsecured debt when you file your bankruptcy. Just like medical or credit card debt in Chapter 13, you don't have to make payments on this debt outside of your bankruptcy. Instead, you will pay a portion of this unsecured debt … See more Lien stripping is a Chapter 13 bankruptcytool that allows people who are upside down (meaning your mortgage exceeds the value of your house) on their house to get rid of their junior liens such as second or third … See more In most districts, you can only use lien stripping in Chapter 13 bankruptcy. However, if you live in Alabama, Florida, or Georgia, you might be able to remove junior liens in … See more You can only strip your second mortgage or other junior liens if the amount of the senior liens on the property exceeds the home's market value. For example, if you have a first and a second mortgage on your house, your first … See more WebIn a Chapter 13 bankruptcy section 506 (a) allows your second mortgage to be stripped off your home and be treated as unsecured debt. Section 506 (a) can only be applied to remove a second mortgage off your home if …
Chapter 13 Lien Stripping - Consumer Action Law Group
WebDec 4, 2024 · Income tax lien recorded on your home. 1. Second or Third Mortgage. Chapter 13 helps in two major ways with a second or third mortgage that aren’t available under Chapter 7. First, you may have the option to “strip” a junior mortgage from your home’s title. If so, that debt would no longer be secured by your home. WebEssentially, if your mortgage is upside-down, you may have the option to strip a second mortgage in a Chapter 13 bankruptcy. For example, perhaps you bought a home that … css background image cut off
Second Mortgage Lien Stripping With Chapter 13 …
WebAvoidance of Second Mortgages Using Chapter 13 and Bankruptcy Code Section 506 (a): Lien Stripping One of the advantages of filing bankruptcy under Chapter 13 is that an … WebMay 25, 2024 · For a homeowner with multiple mortgages, a Chapter 13 bankruptcy can be critical in keeping a property. In some situations, a judge will order that a second … WebOct 5, 2024 · Chapter 13 can be used to help with a second mortgage by turning the secured debt of the loan (secured by the house itself) into unsecured debt. Chapter 13 … css background image data