Debt limits for CH13/ exemptions in stripping lien

[highlife]

I noticed that the unsecured debt limits were raised to $360,475 and secured debt limits raised to $1,081,400. My questions is when is a debt considered secured verus unsecured if it is an UNDERsecured portion of a mortage?

For instance:
First Mortgage: $125,000
Second Mortage (heloc): $160,000
Third Mortgage (house used as collateral for other loan): $200,000
House appraisal value; $290,000

I have been told we would qualify for a CH13 by one attorney that states that since at the time of filing, the third is considered secured. Another attorney told us that since it is undersecured, the undersecured portion would be considered unsecured debt,and thus we would be over the unsecured debt limit and unable to do a CH13. Any experience with this type of situation?

Also, since our house value is very, very close to allowing us to strip the third, how do exemptions and selling cost figure into the equation? If we have $5,000 in equity, our personal BK exemption would cover that , correct? Does that make third mortgage stripable? Would about selling costs9 real estae commission, etc)? Does that get counted in the value of a home too? Essentially there is nothing the third could get if we sold our house, even at top dollar after commission and/or our exemption. Does that mean it can be stripped in a CH13, or do those two items not count in the calculation?

[SMinGA]

Not sure as to your questions - but I did have one thought for you regarding the max limits...

Will this be a joint filing? If so, sum up worst case scenarios for unsecured debts that are yours, your spouse, and joint. Do one of you have less than the max limit for ch. 13 unsecured? If so, it might be possible for that spouse to file ch. 13 - possibly allowing the other to file ch. 7 a little later?

Just a random thought, not sure if it will benefit you.

[highlife]

This will not be a joint filing, just me.

My question has to do with the undersecured portion of the third mortgage.

Do I count the value of teh first second and all of the third as "secured", thus making me eligible for CH13? Or, since there is no value for $195,000 of the third, does that count as unsecured at the time of filing, and end up putting me over the limits (with my other unsecured debt) for CH13? Plus, I have the questions reagrding if personal exemptions and selling costs (relator commission) are taken into account when considering the value for a lien strip.

[walkthaplank]

If the debt is secured by even $1 of equity in the home, it is secured entirely. There is no such thing as "under secured" for the sake of lien stripping. If I were you, I might want to wait a few months and let the property drop in value prior to filing. But to answer your question about the third mortgage, based on your appraised value and listing of other mortgages ahead of this one, it is still most definitely secured debt and not subject to being stripped.

You also may want to consider walking away from the home in your filing and be out from under it.