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Question about lien stripping. If debtors house is worth $200K,

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Question about lien stripping. If...
Question about lien stripping. If debtor's house is worth $200K, and he still owes $195K for the 1st, PLUS $20K in arrearage for the 1st (that makes the it $215K he owes for the first), can he add the arrerage to reach the finding that he owes more on the 1st than the value of the house in order to strip the second lien?

Question #2: Same fact, but if he only owes $205K for the 1st, can he partially strip the second?

Thanks!
Submitted: 8 years ago.Category: Bankruptcy Law
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6/24/2010
Bankruptcy Lawyer: Terry L., Attorney replied 8 years ago
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2,984
Experience: Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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In a chapter 13 you can only strip off a wholly unsecured 2nd mortgage. There must be no equity for it to attach to. You would take the baXXXXX XXXXXsted in the creditors proof of claim, which would include the arrears in their total payoff amount. If the 2nd is fully unsecured, then it may be stripped by motion/adversary in the chapter 13. The loan will then receive a claim along with your other unsecured creditors. So if you are doing a 10% plan to the unsecureds, if you complete the case, the lien will be stripped off having paid them just 10% of the balance on the 2nd.
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