Experience Visit http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint). The Markus webpage also contains more information on
Education/Credentials J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here
Question I live in Orange County CA. Is it possible to file Ch.13 after a discharged Ch.7 in order to strip down a second mortgage not covered by the value of the home (primary residence)? Is it possible to strip-down the loan on a rental property to the market value of the rental home? I have heard that in some cases the courts have not allowed a Ch.13 strip-down immediately after Ch.7.As I understand, the 2nd lean is already discharged in the Ch.7. What would happen to Ch.13 discharge if there is no loan left to be discharged?
Answer The Judges in the San Fernando Valley Division of the Central District of California recently ruled that you cannot strip a lien in a Chapter 13 after a Chapter 7 discharge (known commonly as a "chapter 20") where there will be no discharge in the Chapter 13 case. I suspect the orange county judges would follow this since it's in the same District.
Most likely you could strip the lien in a Chapter 13 case filed more than 4 years after the prior Chapter 7 case, but that issue hasn't been ruled on yet.
