Can a Chapter 7 bankruptcy wipe out your mortgage?

Filing for Chapter 7 bankruptcy will wipe out your mortgage loan, but you’ll have to give up the home.

How to get rid of second mortgage in Chapter 13 bankruptcy?

If your house has gone down in value since you bought it, a Chapter 13 bankruptcy may help you to get rid of your second mortgage. This is done through a process called “lien stripping.” Read on to learn about how you can use lien stripping to remove your second mortgage lien from your house.

Can a lien on a house be removed in Chapter 13 bankruptcy?

If you keep the house, all liens will remain, and the lender on each loan will be able to exercise lien rights if you fall behind on your payments. If your home equity is upside down, you might be able to strip your junior mortgage lien through Chapter 13 bankruptcy.

Can a Chapter 7 mortgage remove a junior lien?

Chapter 7 Won’t Strip a Junior Mortgage Lien. Lien stripping is the process of removing junior liens (such as second or third mortgages) from your house if the balance of your first mortgage (or other senior liens) exceeds the value of the property.

Filing for Chapter 7 bankruptcy will wipe out your mortgage loan, but you’ll have to give up the home.

What happens when you file for Chapter 7 bankruptcy?

Although Chapter 7 bankruptcy gets rid of your personal liability on your mortgage, the lender can still foreclose if you stop paying. Filing for Chapter 7 bankruptcy will wipe out your mortgage loan, but you’ll have to give up the home.