I need some questions answered in regads to LIEN STRIPING >

I own a home here in Arizona, the real estate market is horrible and my home has lost alot of its value. I have a first with a balance of around $188,000 and I took out a second about a 1 yr ago for $25,000.00. Since a house has sold recenltly in my area thats just like mine for only $175,000 I would be able to do a lien strip on this, correct? I am going to file some sort of a bk here soon, probably a chp 7 however was advised if I do a lien strip that I would have to file a chp 13.. Can someone please give me some feedback on how this process works.. Am I just better off at this point to just rid myself of this home all together or should I keep it?? I can qualify for a ch 7 bk in my state due to my income and of course my high house payments. I want to file ch 7 and* just move out of this house a while down the road and get a much cheaper apartment. However if I am able to lien strip the second mtg I may stay in the home as a nice apartment would not be much difference in price here.. Can someone please give me some feedback on this... Has anyone here done a lien strip?Thanks for the help!

Correct, to lien strip a mortgage, you need to file a chapter 13.

In that respect, you are probably better off in the long run to file the 7 and dump the house than struggle with a chapter 13.

However, if you can substantiate the fact that your home is worth less than the 1st mortgage, you could file a motion to avoid the lien of the 2nd in a chapter 13 because the lien has not value. However, you cannot do that in a 7.