Chapter 7 case

Stripping Second Mortgages In A Chapter 7 Case

Call: 888-297-6203 This blog post is about getting an effect in a Chapter 7 case which is similar to lien stripping in a Chapter 13 case. In a Chapter 7 bankruptcy case, the filers get an opportunity of keeping their debts on a secured loan until they are keeping up with their payments. This, together with the Florida Constitution, allows the keeping of financed homes through bankruptcy. But, most of the people, these days, are struggling with the problem that their house is underwater and the equity does not secure their second mortgage anymore. For example: Home Value    [...]


Can Second Mortgages be Stripped in Chapter 7 Bankruptcy?

Call: 888-297-6203 As per the latest ruling by the Eleventh Circuit Court of Appeals, second mortgages can be stripped off in a Chapter 7 bankruptcy case. Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group say, this means that if the amount on 1st mortgage is more than the current market value of the home, the 2nd mortgage is considered as good as unsecured and therefore can be discharged as other unsecured debts are discharged in a chapter 7 bankruptcy. Earlier, this discharging of second mortgage was possible only in case of Chapter 13 bankruptcy cases [...]