When you are planning to strip a second loan, should it be classified as "Secured, Paid Pro Rata," "Unsecured General Non-Priority," or another classification? Also, should a motion to strip the lien be sent in at the time of filing or later?
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It is initially filed as secured debt. Once the motion to avoid lien has been granted in your favor the court changes it to unsecured debt and paid at the same percentage as the rest of your unsecured debt.Originally posted by Rubitout View Post
Generally the attorney files the case along with submitting the plan and the motion to avoid lien. Our lawyer filed the case first and then submitted the plan and motion afterward. Our court does things a little differently in that at the 341 we knew whether or not the lien strip motion had been approved or denied and confirmation hearing was held later that same day.
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