Legal Question in Bankruptcy in Georgia
In a chapter 7 bankruptcy case, can one surrender an equity line or a 2nd mortgage and have it discharged in court and retain the primary mortgage?
Asked on 11/14/11, 11:40 am
3 Answers from Attorneys
Glen Ashman
Ashman Law Office also dba Glen Ashman Attorney
If you don't pay the second mortgage, that lender will retain the right to foreclose in a Chapter 7. In some Chapter 13's you may be able to strip a 2nd mortgage.
Answered on 11/14/11, 11:48 am
Bernd Stittleburg
Stittleburg Law Offices, LLC
In a Chapter 7 case, you cannot strip off a second mortgage. It is possible to do so in a Chapter 13 case.
Answered on 11/14/11, 11:50 am
Like Mr. Ashman said 11th circuit has consistantly held that you can only strip involuntary non-purchase money security interests in a Chapter 7. Meaning you can never strip or avoid a 2nd mortgage in a Ch.7. In a Chapter 13 you can look at stripping the 2nd mortgage if it is wholly unsecured.
Answered on 11/14/11, 11:53 am
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