Can Bankrupt Eliminate My Second Mortgage?

Bankruptcy Attorney

Individuals seeking out the assistance of a Dayton bankruptcy lawyer often ask if bankruptcy can eliminate a second mortgage. In even more extreme cases, people want to know about additional liens past their second mortgage as well. The answer depends on which form of bankruptcy you qualify for, how much equity you have in your home, and what types of loans you wish to rid yourself of.

Chapter 13 bankruptcy

Each form of bankruptcy has both its advantages and disadvantages. While Chapter 13 bankruptcy lasts longer (3-5 years) it is the preferred method for individuals with a stable income and/or who own a large amount of property that they wish to keep. If you are seeking to remove unsecured junior liens from real property, Chapter 13 bankruptcy is the form of debt relief you must use, as lien stripping is not available in Chapter 7 bankruptcy.

Lien stripping

Lien stripping is a legal process that allows homeowners with a second or third mortgage to eliminate or strip the junior liens. In order to utilize lien stripping your house must be worth less then what is owed on your primary mortgage. Stripped liens on junior or “wholly unsecured” loans are treated the same as other unsecured debt during your Chapter 13 bankruptcy process and discharged at the conclusion of your successful bankruptcy process.


Chapter 13 bankruptcy is an excellent way to keep your home from being foreclosed on and, as we’ve discussed here, eliminate second or third mortgages. The process of removing a lien, however, isn’t always straightforward. It may require additional steps that only a Dayton, OH bankruptcy attorney knows how to effectively perform. Contact a bankruptcy lawyer at the very beginning of your debt relief journey in order to ensure you eliminate the most possible debt while retaining your property.

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