Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
If your first loan balance is greater than the fair market value of your property as of the date of filing the bankruptcy petition, then the court can "unsecure" the second loan, and then if you make payments to all of your creditors for the 3-5 years of the plan, then the 2nd loan will be completely discharged, and you will continue to own the property with only a first loan.
Hope this helps.
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