QUESTION
Can I file a chapter 7 bankruptcy to get rid of my second mortgage?
Asked on Jun 10th, 2011 on Bankruptcy - Georgia
More details to this question:
Can I file a chapter 7 getting rid of all my bills and also my 2nd mortgage on my house?
14 ANSWERS
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.
Answered on Jun 16th, 2011 at 10:49 AM
Bankruptcy Law Attorney serving Campbell, CA
at
Ellahie Law Firm
Update Your Profile
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.
Answered on Jun 15th, 2011 at 7:36 AM
You cannot strip a second mortgage in a Chapter 7, but you can in a Chapter 13 under certain conditions.
Answered on Jun 15th, 2011 at 6:54 AM
Bankruptcy Attorney serving Concord, CA
at
William Rubendall Attorney at Law
Update Your Profile
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.
Answered on Jun 15th, 2011 at 6:51 AM
Bankruptcy Attorney serving Herndon, VA
at
Maureen O'Malley
Update Your Profile
No. You can only strip the second mortgage in a Chapter 13.
Answered on Jun 15th, 2011 at 6:35 AM
Bankruptcy Chapter 7 Attorney serving San Diego, CA
at
Law Office of Asaph Abrams
Update Your Profile
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.
Answered on Jun 15th, 2011 at 6:33 AM
Bankruptcy Attorney serving Atlanta, GA
at
Saedi Law Group, LLC
Update Your Profile
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.
Answered on Jun 14th, 2011 at 1:43 PM
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.
Answered on Jun 14th, 2011 at 11:42 AM
Bankruptcy Attorney serving Seattle, WA
at
Symmes Law Group, PLLC
Update Your Profile
You may only strip a second mortgage in a chapter 13 bankruptcy, not a chapter 7 bankruptcy.
Answered on Jun 14th, 2011 at 10:50 AM
Alternative Dispute Resolution Attorney serving Ventura, CA
at
Zahn Law Office
Update Your Profile
I believe you are asking about stripping off a second lien on your home. That is only available for chapter 13 cases.
Answered on Jun 14th, 2011 at 10:20 AM
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.
Answered on Jun 14th, 2011 at 10:09 AM
Spencer Hale
A chapter seven bankruptcy will not rid you of your second mortgage.
Answered on Jun 14th, 2011 at 10:04 AM
Bankruptcy Attorney serving Hayward, CA
at
Carballo Law Offices
Update Your Profile
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.
Answered on Jun 14th, 2011 at 10:04 AM
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).
Answered on Jun 14th, 2011 at 9:56 AM