It is possible to get rid of a second mortgage by filing for Chapter 13 bankruptcy, but it can be a complex and difficult process, and it is not guaranteed. In some cases, it may be possible to eliminate a second mortgage through a legal process known as "lien stripping."
Lien stripping is only available in Chapter 13 bankruptcy and is only possible if the value of your home is less than the amount you owe on your first mortgage. In other words, if your home is worth less than what you owe on your primary mortgage, then the second mortgage or home equity loan may be considered unsecured debt, which can be treated similarly to credit card or medical debts.
In a Chapter 13 bankruptcy case, you would need to file a motion with the court to strip the second mortgage lien. The court would then review your case and make a determination as to whether or not the second mortgage can be eliminated.
It is important to note that lien stripping can only eliminate a second mortgage or home equity loan. Any other liens or mortgages on your property, such as a first mortgage or a tax lien, cannot be eliminated through this process.
If you are considering filing for Chapter 13 bankruptcy and want to eliminate a second mortgage or home equity loan, it is highly recommended that you consult with a qualified bankruptcy attorney to explore your options and determine the best course of action for your situation.
It is important to work with a qualified bankruptcy attorney who can help you. If you are interested in filing bankruptcy please contact Hishaw Law LLC at 1.307.228.0407 if your located within the state of Wyoming or 1.704.218.9883 if you live in the Charlotte, North Carolina area or email us at jhishaw@hishawlaw.com.
