Can I file a chapter 7 bankruptcy to get rid of my second mortgage? 23 Answers as of June 16, 2011

Can I file a chapter 7 getting rid of all my bills and also my 2nd mortgage on my house?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
Filing a Chapter 7 bankruptcy will NOT get rid of your second mortgage if you still own the home. It will generally discharge most regular bills. Exceptions to discharge are set forth in 11 U.S.C. Section 523. There is a procedure in a Chapter 13 that can convert your second mortgage to unsecured debt if the value of the home is less than the first mortgage.
Answer Applies to: California
Replied: 6/16/2011
Ellahie & Farooqui LLP
Ellahie & Farooqui LLP | Javed Ellahie
Chapter 7 does not eliminate the 2nd mortgage. It does prevent them from suing you personally but the lien survives and will have to be taken care off later if you sell or refinance the home. Chapter 13 may allow you to do so.
Answer Applies to: California
Replied: 6/15/2011
Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
A CH 13 BK is used to void a 2nd lien on a primary residence, not a CH 7.
Answer Applies to: California
Replied: 6/15/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
You cannot strip a second mortgage in a Chapter 7, but you can in a Chapter 13 under certain conditions.
Answer Applies to: Indiana
Replied: 6/15/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Personal liability is excused form a mortgage on real property in a chapter 7 bankruptcy. This means that if you give up the house the lender can not pursue you for a deficiency judgment. If you are keeping the property the lender retains its security int erst. This means that you will have to make the usual payment until the mortgage loan is paid off.
Answer Applies to: California
Replied: 6/15/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    No. You can only strip the second mortgage in a Chapter 13.
    Answer Applies to: Virginia
    Replied: 6/15/2011
    Law Office of Asaph Abrams
    Law Office of Asaph Abrams | Asaph Abrams
    The current state of the law is that chapter 13's-not 7's-permit a procedure for "removal" of the lien pertaining to a second mortgage that is wholly unsecured. Chapter 7 will discharge your personal liability on the second mortgage, however, it will not remove the lien.
    Answer Applies to: California
    Replied: 6/15/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    In order to avoid a junior lien on your home, you will need to file under Chapter 13 and retain an attorney to represent you. Chapter 7 does not deal with the mortgage.
    Answer Applies to: California
    Replied: 6/15/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    No. You can only strip off the second mortgage in Chapter 13. You can do this when the first mortgage is more than what the property is worth.
    Answer Applies to: California
    Replied: 6/15/2011
    Saedi Law Group
    Saedi Law Group | Lorena Saedi
    Currently in our district, the Northern District of Georgia, you are only allowed to "strip" second mortgages in Chapter 13 cases not Chapter 7. The ability to remove second mortgages also depends on the equity in your home and if the second mortgage is completely underwater. I would suggest contacting a local bankruptcy attorney in your area to see what options are available in your district.
    Answer Applies to: Georgia
    Replied: 6/14/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    No. Liens are not removed in a Chapter 7. The possibility to remove a lien is only in a Chapter 13.
    Answer Applies to: California
    Replied: 6/14/2011
    Law Office of Nanina Takla
    Law Office of Nanina Takla | Nanina Takla
    The chapter 7 will get rid of your personal obligation to pay the second mortgage, but the lien will remain on your property. What this means is that if you don't pay the second mortgage, they can't sue you personally to collect but they can foreclose on the property.
    Answer Applies to: Oregon
    Replied: 6/14/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Yes and no. Technically you must file a chapter 13 to strip the lien. However, there may be a way of achieving the same result through chapter 7. Call me and I will discuss it with you.
    Answer Applies to: California
    Replied: 6/14/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    You may only strip a second mortgage in a chapter 13 bankruptcy, not a chapter 7 bankruptcy.
    Answer Applies to: Washington
    Replied: 6/14/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    I believe you are asking about stripping off a second lien on your home. That is only available for chapter 13 cases.
    Answer Applies to: California
    Replied: 6/14/2011
    The Law Offices of Robert L. Driessen
    The Law Offices of Robert L. Driessen | Robert L. Driessen
    When a house is involved you will really want to discuss your options with a bankruptcy attorney. It is too great an asset to make a mistake on.
    Answer Applies to: California
    Replied: 6/14/2011
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    A chapter seven bankruptcy will not rid you of your second mortgage.
    Answer Applies to: Arizona
    Replied: 6/14/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    No, to remove from title to the house the junior lien (second mortgage) you need to file a Chapter 13 case. The value of the house has to be less what you owe on the first mortgage and it must be your personal residence. No stripping of second mortgages allowed in Chapter 7.
    Answer Applies to: California
    Replied: 6/14/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    No you cannot get rid of your 2nd mortgage. It is a secured obligation, and the lender has the right to foreclose on the real property if you do not pay it. You can get rid of other unsecured obligations with a Chapter 7.
    Answer Applies to: California
    Replied: 6/14/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    You can get rid of the debt you owe on the 2nd mortgage in the event of a foreclosure or other sale, but you cannot remove the lien in a Chapter 7 case.
    Answer Applies to: California
    Replied: 6/14/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    You can only strip a second mortgage in a Ch 13.
    Answer Applies to: California
    Replied: 6/14/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    No. You can only strip the second mortgage in a Chapter 13, which is a repayment plan. In a Chapter 7, you can discharge all of your unsecured debt, but you are stuck with the second mortgage.
    Answer Applies to: California
    Replied: 6/14/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    If you file a Chapter 7 you can get rid of a second mortgage but only by surrendering the home. In SOME Chapter 13s you may be able to strip off a Chapter 13 and not pay it. That requires a very experienced lawyer (and the right numbers).
    Answer Applies to: Georgia
    Replied: 6/14/2011
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