Yes - unless the amount owed exceeds the Chapter 13 section 109(e) eligibility limits. Current limits are: Secured debts have to be less than $1,081,500.00 secured& Unsecured less than $360,525 as of 4/1/2010 Reproducing Section 109(e). Limits are adjusted for inflation every 3 years, *next adjustment 4/1/2013.* * * If the lien is properly filed and perfected and there is enough equity in the property to cover the lien than add it to the secured amounts, if there is no equity to cover the lien, add it to the unsecured amount. If it falls in between then you the part that the equity could pay gets added to the secured amount, the rest to unsecured. Also in a 13 you may be able to wipe it out if it impairs an exemption. Confused ? Do consult a lawyer.
Answered on Sep 11th, 2012 at 3:50 PM