Ask a Lawyer - Archive

I have two mortgages on my home. The second is a HELOC which attachs to no equity as my home has depreciated substantially.

Am I able to stop paying on the second and have it discharged in bankruptcy?

Home mortgages that are totally underwater can be voided in a Chapter 13 bankruptcy case. Lien stripping is not currently available in Chapter 7.

To strip a lien, the usual procedure is to file a motion or an adversary proceeding within your bankruptcy case to obtain a determination by the court that the liens senior to the lien in question equal or exceed the current value of the property.

To make the mortgage or HELOC permanently void, you must complete the Chapter 13 plan and get a discharge.

An experienced bankruptcy lawyer can walk you through the procedure and assess whether you are eligible for Chapter 13.