Hello and thank you for allowing me the opportunity to assist you.

Q: Do I just motion for hearing and lien avoidance?
A: Yes, you can file a Motion to value the collateral pursuant to Rules 3012 and 9014.

Q: Can I do a motion for shortened time?
A: Yes, you can file a Motion for shortened time for the creditor to respond.

Q: Been reading lots and I've concluded and collateral lien avoidance is what I do for the unsecured first mtg that never recorded a lien, is this right?
A: Unrecorded liens are generally voided, so filing for a strip-off may be unnecessary. However, the first lienholder may have an argument, such as equitable subrogation, depending on the facts. For example, if there was a refinance, and that is how the lienholder obtained its lien, then it may have an argument that it should stand in the shoes of the lienholder that it paid off. In that case, it could potentially rely on that paid-off lienholder's recorded lien and claim that it is in first position. I strongly suggest that you retain an attorney considering the amount of money at stake.

Q: Please help us with what to do first or should we try to convert to a chapter 13?
A: I answered the other questions assuming you were already in a Chapter 13. You cannot strip-off a lien in a Chapter 7. If you need to strip-off the lien, then converting is wise. But if the unrecorded first lien does not need to be stripped-off for the reasons mentioned above, then converting should not be necessary.

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Thank you.

Hi again.

Rules 3012 and 9014 refer to the rules of bankruptcy procedure, not title 11 of the USC (I provided a link in my earlier answer). Yes, the creditor has 28 days to object, so I would file a motion for shortened time to respond with the motion to value collateral. No, there are no forms for those motions so far as I know. I always draft them myself. However, you can call the bankruptcy court clerk in your jurisdiction and ask if there are any such forms available. Making a jurisdiction statement is not a bad idea, though I doubt the court will throw out your motion if it doesn't include it.

Hi again.

The unrecorded lien would not need to be stripped off if the trustee exercised his rights under Section 544 (referred to in the other thread). However, as I wrote in that other thread, that likely didn't happen, and if it did, it would not have helped you because the trustee would have sold your property. I apologize for not explaining that better here.

After a Chapter 7, a lender can foreclose even if it is completely underwater. A lien can be stripped off in a Chapter 13, but not in a Chapter 7. Filing a motion to value would not help in a Chapter 7. Yes, it could delay discharge because the judge will deal with it, but it won't help strip the lien. You can try converting to a 13, or waiting until after you're discharged, then filing a 13 (which does have some risk since there could be a good faith argument). I do strongly suggest that you hire an attorney if possible.

Hi again.

The attorney can review everything in detail, and then advise you as to whether to convert, to file a new 13 after the 7 is discharged, etc., and he can help you strip off the lien if you do convert or file a new 13. You wouldn't convert to a 13 after you are discharged, however. But if you convert beforehand, or if you file a new 13, then the automatic stay will be in place.