Chapter 13 - Stripping the 2nd Mortgage??

[Bkq]

We have completed our pre-bankruptcy review and we are going to be filing for Chapter 13 bankruptcy with a 100% repayment over 5 years. However, our attorney said that we could strip our 2nd mortgage because our house is worth less than the 1st and 2nd mortgage combined. My question is this: what does stripping the second mortgage mean??? Does that mean that the amount that we owe will be included in our chapter 13 repayment?? ---- OR - does it mean that this amount is completely eliminated. I forgot to ask our attorney yesterday - but thought that someone my know the answer to this. Thanks!!

[Pandora]

We have completed our pre-bankruptcy review and we are going to be filing for Chapter 13 bankruptcy with a 100% repayment over 5 years. However, our attorney said that we could strip our 2nd mortgage because our house is worth less than the 1st and 2nd mortgage combined. My question is this: what does stripping the second mortgage mean??? Does that mean that the amount that we owe will be included in our chapter 13 repayment?? ---- OR - does it mean that this amount is completely eliminated. I forgot to ask our attorney yesterday - but thought that someone my know the answer to this. Thanks!!

maybe you misunderstood your attorney You can only strip a 2nd if the value of the house is LESS than what is owed to the 1st mortgage. Stripping the 2nd means that the 2nd becomes unsecured debt - and gets paid just like the rest of your unsecured creditors, however the lien does not go away until you complete your plan.

You're in a 100% payback to all secured and unsecured creditors? Ouch