Does anyone know if someone could file a Ch13, let the house go and then strip the second mortgage? OR do you have to keep the home in order for lien strip to occur? Thanks.
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I don't know what you mean by let the house go and lien strip. That's redundant. So, yes, you would need to keep the home in order to strip the lien.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt. -
I don't understand your question... why would you "let the house go" and then strip a second mortgage??? If you let the house go there is no second mortgage to strip!08-2009:Quit Paying Credit Cards
04-2010:Hired 2nd Attorney;05-2010:Filed 7
06-2010:341 Meeting (went very well)
08-24-2010: Discharged; 09-02-2010 Closed!!Comment
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Even without a lienstrip (which, as already pointed out, is pointless if you don't keep the house), you will be discharged from liability for the second mortgage at the end of the Chap 13 and will not be reponsible for any deficiency. Is that what you are asking?LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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Yes, LadyinRed that is what I was "trying" to ask
Sorry for the confusion. I just know if we "let the house go" without doing a CH13 we would be responsible for the deficiency.
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The end goal of a ch. 13 is discharge of all eligible debts. That part is not different from ch. 7. Its just a longer road to travel, and some debts may be repaid along the way.
Originally posted by bkstuff View PostYes, LadyinRed that is what I was "trying" to ask Sorry for the confusion. I just know if we "let the house go" without doing a CH13 we would be responsible for the deficiency.Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.)Comment
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Thanks for the responses.Comment
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