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Bankruptcy Law/chapter 7/ 2nd mortgage

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Expert: - 4/2/2009


Question
Can a 2nd mortgage be dismissed in a chapter 7 bankruptcy,
if the 1st mortgage is for 75% of the home, and reaffirmed, and the 2nd is only for 25%?

Answer
Chapter 7 cannot discharge a 2nd mortgage since they retain the lien on the home...unless you are surrendering.
There is a shot if the home is over-financed, and that loan is wholly unsecured that you can strip it off, however the lender will fight you on the valuation.

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Terry Leeders

Expertise

Handles Chapter 7 and Chapter 13 bankruptcy cases.
10 years of extensive bankruptcy experience. Filed over 3000 cases
Chicago Bankruptcy Lawyer website
"One On One Personal Service You Deserve"

Experience

I have been practicing bankruptcy law for 10 years. I have helped over 3000 consumer bankruptcy clients in that time.

Organizations
Chicago Bar Association Illinois Bar Association

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author of Chicago Bankruptcy Blog
Chicago Chapter 13 Bankruptcy Blog
Illinois Bankruptcy Law Blog
Fresh Start Partners

Education/Credentials
University of Illinois Thomas M. Cooley Law School
Chicago Bankruptcy Lawyer website

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