For a full answer to your question, you would have to specify the form of bankruptcy to which you were referring (e.g. chapter 7 or chapter 13). State law could be an issue, too. Generally, though, in a chapter 13 bankruptcy, second mortgages can be "stripped," meaning that the corresponding liens are discharged (or "avoided"). Under chapter 7, however, a discharge operates only to relieve you of personal liability for the second mortgage debt. Liens survive a chapter 7 bankruptcy, and depending on state law and other factors, a second mortgage lender could record a lien for the first time even after discharge. Therefore, a second mortgage lender could, theoretically, foreclose even though you personally have been relieved of the debt in bankruptcy. In most cases, the lender does not need to have a lien recorded in order to begin a foreclosure action, although it would often need to show that the mortgage itself had been recorded. Nevertheless, even though a second mortgage lender could foreclose, it might not make financial sense for the lender. The first mortgage lender would have priority over the second, so even if a second mortgage lender foreclosed and forced a sale, the first mortgage lender would be paid before the second. This means that the mortgaged property must be worth enough such that there would be money left over, after a sale, for the second lender to get paid; otherwise, second mortgage lenders have little or nothing to gain from a foreclosure action. If you live in Ohio and would like more information about bankruptcy and the effects of discharge, about what debt collectors can and cannot do, or if you would like to discuss your specific situation in detail, then contact www.copelawoffices.com.

I filed chapter 7 bk and discharged in Minnesota. My property is "Torrens" or Registered. Second mortgage failed to memorialized their lien on the certificate of title, therefore , according to Minnesota statute 508.47, the lien did not attached to the property. All the second mortgage had before the BK was a contract with me which was extinguished the day of my discharged. If they try and record now, they would essentially be "creating" a lien which would be in straight violation of section 524 of the bk code. Am i correct? Thanks.