There is a possibility to reduce or eliminate the amount you owe on your second mortgage through a chapter 13 if the lien is "wholly undersecured".
This means that the property is not worth more than the first mortgage balance. In your initial post, you indicated that your mortgages combined totaled $195,000. I didn't know what part was the first and what part was the second.
However, if you believe your house is worth $130,000, and your first mortgage balance is more than that, your second would be wholly unsecured and would be subject to elimination as an unsecured debt. However, if your first mortgage has a balance of less than $130,000, your second would not be wholly unsecured, and you could not get rid of it in full. However, you could try to reduce the amount you repay by the home's value.
In your friend's case, the debt was likely wholly unsecured.
However, if you file a 13, you're likely to have to pay all of your credit card debts back as well.