QUESTION
Can a secure 2nd lien be removed after has been discharged from Bankruptcy 7?
Asked on Mar 11th, 2013 on Bankruptcy - California
More details to this question:
Did a BK chapter 7 and got discharge. 1st loan original from purchase wasn’t reaffirm, but worked a loan mod during BK and currently current on payments. 2nd secure was a equity line wasn't reaffirm, I have been trying to work a voluntary settlement, but two law representatives told me that if it was discharged during the BK, I can removed the lien. Is this true? State of California, L.A County.
2 ANSWERS
A second mortgage can only truly be discharged in a chapter 13 via a strip lien motion. If at anytime the second mortgage becomes an unsecured debt, then you can discharge the debt in a chapter 7 and request a motion to avoid lien on the property.
Answered on Mar 18th, 2013 at 1:53 PM
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Not true. A junior lien (2nd) on a primary residence can only be removed (stripped) in a Chapter 13. You cannot strip a junior lien in a Chapter 7.
Answered on Mar 11th, 2013 at 2:19 PM