What is house isn't worth all of leins?

[rpeterson]

I have a question, We have decided that filing a chapter 13 BK would be the best thing for our situation, we had our meeting of the creditors, and we reaffirmed our 1st and 2nd mortgage, interestingly enough, American General was there claiming a 3rd lein on the house, we did borrow $8000 from them 18 months ago, for a new roof on the house. In this 18 months, we have paid them $4500, and we still owe them $9800.00. Ok here is the question, our house will not appraise for even what the 1st and the 2nd is worth, what happens to American General, actually I would like to see this preditory lending institution sued and shut down by the government, but I don't think, I can do that alone. The attorney that american general sent, wants to scedule another appraisal, to see if he can get more money. I have the 2005 tax records, and I have sent them to the attorney, They are going to have to inflate the tax records by $70,000, just to break even with the 1st and 2nd Mortgages. I faxed this information to this attorney, just in case he gets a wild hair up his butt to "fix" an appraisal. He was given 15 days to fix the problem, if he can't fix the problem, what happens? Do I still owe them money?