Tampa Bankruptcy Attorney

I had a call from a potential client today who wanted to know if she could strip her 2nd mortgage in a chapter 7. This is a very interesting question because in general you cannot strip a lien in a chapter 7 case. In fact both cases Ryan v. Homecomings and In re Laskin disapproved of a lien strip off in a chap 7.  So why am I so hesitant to say that you cannot strip a 2nd mortgage in a chapter 7? Because there was recently a case in Orlando where a bankruptcy judge approved a lien strip on a 2nd mortgage in a chapter 7. This is by far uncommon and either happened by mistake or happened because the motion for the lien strip was uncontested. I do not think this case will become precedent for a lien strip in a chapter 7.

Of course, you always have the ability to strip your 2nd mortgage completely in a chapter 13 case when your 2nd mortgage is wholly unsecured by the value of the property.

For more information please call my law office located at: 503 East Jackson Street, Suite 133, Tampa, Florida 33602 or call me at: (813) 402-0903.

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This entry was posted on Tuesday, November 10th, 2009 and is filed under Chapter 7, Featured.