Legal Question in Bankruptcy in Maryland

My wife and I are seperated and she lives in Maryland in a house that we own jointly. There is a 1st and 2nd mortgage on the property. I am the only one on the note on the 2nd. If I declare Ch. 7 BK and the balance is written off, will there still be a lien on title? Can I leave the first mortgage alone or will they want to foreclose?


Asked on 2/05/10, 7:40 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

The lien of the 2nd will survive unless avoided, which is not possible in a Chapter 7 (at least in Md.). If you file a Chapter 13 (you both MAY need to file), and if the 2nd is not secured by any actual equity in the property (i.e., the first is more than the house is worth), the lien should be avoidable. If the first remains current, they will not be able to foreclose because of the bankruptcy.

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Answered on 2/10/10, 8:20 am


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