Lien Stripping Question

[Walangatik]

Does the property have to be my primary residence or can it be a rental home to be a able to strip a lien?

Also, if I decide to strip the lien, do I need to file separate forms on top of the bankruptcy petition form? Do I need to file it with my petition?

Also, how do tell the judge I want to strip the 2nd? Is it something I include in writing somewhere on my chapter 13 petition or elsewhere.

Im sorry guys if I sound like a dodo, but I recently sought service from two paralegals who did me wrong but took my money so I at this point, I want to try doing it myself.

Thanks everyone!

[HHM]

If you have multiple properties and you are filing BK-13, you need to hire an attorney. There are just too many pitfalls, spend the money so it is done right.

[justbroke]

Does the property have to be my primary residence or can it be a rental home to be a able to strip a lien? Also, if I decide to strip the lien, do I need to file separate forms on top of the bankruptcy petition form? Do I need to file it with my petition?

I generally don't recommend that a debtor file pro se if they are attempting lien stripping. Lien stripping, or the official Motion to Determine Secured Status and Avoid Lien, is a contested matter and in some Districts, is done by complaint (adversary proceeding (AP)). If it's by AP in your District, I really don't suggest the average or above average debtor attempt this. I did a lien strip in my Chapter 13, but it is only a contested matter in my District and we allow negative noticing (no hearing required).

Also, how do tell the judge I want to strip the 2nd? Is it something I include in writing somewhere on my chapter 13 petition or elsewhere.

See above, this is not a simple thing you write on your petition. I will say that some very limited Districts allow lien stripping without motion by indicating such on a "form" based Chapter 13 Plan. These form-based plans are pretty much done for you, and you fill in the blanks. However, this could still lead to a hearing on the matter.

I do have a blog on my Motion to Determine Secured Status and Avoid Lien here on the Forum.

Im sorry guys if I sound like a dodo, but I recently sought service from two paralegals who did me wrong but took my money so I at this point, I want to try doing it myself.

While a paralegal may prepare this sort of paper for an attorney... I would never use a paralegal for a contested matter or complaint. I'm not even sure that they are allowed to do so, if they are in any way providing legal advise on the subject matter. Even attorneys can get into trouble for preparing papers (motions, etc) for a debtor as a ghost writer.

I think the hesitation you may be sensing in the tone of my post, is that you are trying avoid liens on an investment property. There are many things that you still need to deal with in your Plan, let alone deal with non-homestead property.

These include...

• how does your plan treat your primary residence?
• are you stripping any liens on your primary?
• will you be required to pay the entire market value of the investment property into the plan (to the extent the unsecured creditors are paid 100%)
• will stripping the investment property put you into a 100% plan?
• can you actually fund a 100% plan?
• do you understand that if you strip the lien on the investment property, and your Chapter 13 is discharged, you're probably facing foreclosure of the investment property?
• do you know if "lien strips" are done by motion (contested matter) or by complaint (adversary proceeding)?
• are you prepared to litigate in either a contested matter or in an adversary proceeding?
• why do you want to keep the investment property?
• what's your real game plan with this bankruptcy (save property, discharge large unsecured debt)?

[Walangatik]

ok, so help me out with this please:

Can I surrender my rental property even if it is occupied by a tenant?

and

Although I am filing an individual bankruptcy petition, my husband is on the mortgage loan for this rental property, will the bankruptcy or foreclosure appear on his credit? I refuse to ruin my husbands credit and thats why I am not surrendering the rental property.

Thanks very much.

[justbroke]

Can I surrender my rental property even if it is occupied by a tenant?

Absolutely. No different than selling your property.

Although I am filing an individual bankruptcy petition, my husband is on the mortgage loan for this rental property, will the bankruptcy or foreclosure appear on his credit? I refuse to ruin my husbands credit and thats why I am not surrendering the rental property.

They will go after him for paying the mortgage loan. If he doesn't pay it, then his credit will be affected.