There is a chance that when you first enter into bankruptcy proceedings that you are going to become over whelmed with all the various aspects and legalities of it. If you are using a quality Dayton bankruptcy attorney you will not have to be overly concerned about much of this. This expert has the expertise to deal with all of the legal aspects of your case.
Removing The Lien
One common occurrence that can arise in a Chapter 13 bankruptcy is lien stripping. While most people are concerned when they don’t qualify for a Chapter 7 bankruptcy, the Chapter 13 can be a very viable alternative.
Lien stripping can be quite complex but what it entails is eliminating any wholly unsecured liens on your property such as some mortgages. The first mortgage will take priority, and if there is no money left over after the proceeds of the sale of the house then 2nd mortgage holders will not get any mortgage. In this case the 2nd. Mortgager is considered wholly unsecured. This technically means that the mortgage has been stripped in the Chapter 13 bankruptcy. In some states tis may be applicable in Chapter 7 bankruptcies.
While this type of action may not allow you to keep your home, at least you do not have a ongoing debt with the 2nd mortgager who could take legal action against you.
Lien stripping only comes into play when the value of your home is less than the 1st mortgage amount you have on it.