Can I strip my second mortgage in a chapter 13 if my first mortgage exceeds the value of my home? 24 Answers as of September 19, 2011

Yes. That is one of the major advantages of a Chapter 13. This can be a complicated process and should be handled by a competent attorney that has experience in Representing debtors. In some courts the process requires an adversary proceeding. In others the court allows the " strip off" through the plan confirmation process. And the debtor needs to be prepared with proof of the value of the property and amount owed on senior liens.

Yes, if your home is valued less than what you owe on your first mortgage, you can strip the 2nd mortgage in a chapter 13 bankruptcy. After you file the chapter 13 bankruptcy, you file a motion to strip the 2nd lien. The court temporarily strips the 2nd lien and then if you complete your chapter 13 plan payments and receive your discharge, they will judicially remove the lien from your house so that it will no longer be there. A chapter 13 is a repayment plan bankruptcy and you need to make sure that it is the right chapter for you to file and that you have the income for you to complete the plan payments. A chapter 13 bankruptcy is very detailed and complex and I highly suggest that you speak to an attorney before you file or attempt to file it on your own. Some attorney's will allow you to pay their fees through your chapter 13 bankruptcy plan. I hope you found this answer useful.

Yes you can, and you should also be consulting with an experienced bankruptcy attorney, because this is not something for the layperson.

If you try to do it yourself, prepare to lose. Bankruptcy is NOT a do it yourself project and you are not going to succeed against the bank's trained lawyers. Conversely, a good lawyer will often win a lien strip easily, with proper preparation. There is no lien strip statute. The concept comes from court opinions and differs by district.

Pursuant to section 506 a claim is secured only up to the value of the collateral securing the lien. So you can strip your second mortgage if your fist mortgage exceeds the value of your home.

Where a second mortgage is wholly unsecured, meaning the value of the home is less than what is owed on the first, the second can be avoided. In some jurisdictions this can be accomplished via motion and in other jurisdictions an actual adversary proceeding must be filed.

No. The second must be fully unsecured.

A condition of a junior-lien strip is that its senior-lien balance must exceed the value of the home. Pursuant to an Order granting a lien strip motion, and confirmation of the Chapter 13 Plan, the stripped lien would be treated in the plan as unsecured debt. Mere citation of a statute is insufficient; the motion and its noticing is involved and may need to conform heavily to local practices.

Yes, because this leaves your second mortgage completely unsecured which is why it likely can be stripped.

If your first mortgage exceeds the value of your home you may consider a motion to strip. This requires an appraisal and documentation of the loan amounts. The second mortgage lender may object to this. If the court approves the property valuations submitted, your second mortgage can be discharged at the end of your chapter 13 bankruptcy period if all payments have been made and the case is discharged.

You need to hire a lawyer to file the Chapter 13 case and motion to avoid lien.

You can lien strip under the circumstance you state. The Northern California court website has forms to fill out to do this.

Yes you can but you should consult an attorney.

Yes, you can strip a second if the value of the house is less than what is owed to the first. It is included as one of the provisions of the Chapter 13 plan and requires a motion to establish the value.