Lien stripping in Chapter 13 bankruptcy is a process that allows you to eliminate a junior lien (such as second or third mortgage) from your real estate. You can strip a junior mortgage (and the associated lien) if the house is worth less than the balance of the senior eazye.info: Cara O'neill, Attorney.
Bankruptcy makes it possible to cancel, or strip off, liens on the debtor’s assets. Which liens can be stripped depends on. the kind of lien in question, the chapter the case is filed under and; the value of the asset to which the lien attaches. There are different rules for different combinations of .
How to Strip a Lien off Your Mortgage in Chapter 13 Bankruptcy; Bankruptcy. Bankruptcy. Caulkett, holding that a Chapter 7 bankruptcy filer can’t strip off the lien of a junior mortgage holder on property that is the debtor’s principal residence. The Court based its decision, at least in part, on a prior case that prohibits a bankruptcy.
Lien stripping is a Chapter 13 bankruptcy tool that allows people who are upside down (meaning your mortgage exceeds the value of your house) on their house to get rid of their junior liens such as second or third mortgages. Through a lien strip, the bankruptcy court essentially takes your second mortgage (which is a secured debt where the Author: Baran Bulkat, Attorney.