Filing chapter 13 after chapter 7?

[fortknox]

I did a search for this, but couldn't find an answer...so sorry if I missed it somewhere.

I'm going to file chapter 7 sometime in the next few weeks. I've been reading about having a 2nd mortgage stripped with a chapter 13. So I'm wondering how long after a chapter 7 can I file a chapter 13? I would be interested in doing so just to get rid of that 2nd mortgage.

We are way upside down on our house and owe about $50,000 on our 2nd mortgage. We just had our 1st modified (will be effective 4/1) but the 2nd could not be modified apparently. Anyone know if filing chapter 13 and stripping the 2nd would have any impact on my modification? It wouldn't invalidate it or anything, right?

[justbroke]

I'm going to file chapter 7 sometime in the next few weeks. I've been reading about having a 2nd mortgage stripped with a chapter 13. So I'm wondering how long after a chapter 7 can I file a chapter 13? I would be interested in doing so just to get rid of that 2nd mortgage.

Technically this usage of a Chapter 20 to lien strip does not work. (I will caveat this that some Districts still seem to be "clarifying" this and it might work for you, but forget trying this in Florida, Georgia or Alabama as In Re Tanner controls.) The problem is, that in order to strip a lien, you must receive a discharge. You cannot receive a discharge in a Chapter 13 filed right after a Chapter 7 because you're not entitled to receive a discharge in a subsequently filed Chapter 13 (after a Chapter 7) for 4 years.

There are a few -- very few -- that were able to make this work, but I haven't seen any in my Circuit (Court of Appeals). The issue is the requirement of a discharge... in order to get the lien strip to stick.

We are way upside down on our house and owe about $50,000 on our 2nd mortgage. We just had our 1st modified (will be effective 4/1) but the 2nd could not be modified apparently. Anyone know if filing chapter 13 and stripping the 2nd would have any impact on my modification? It wouldn't invalidate it or anything, right?

It won't affect your modification, but I don't think you can strip the 2nd anyhow in a Chapter 20.

[OhioFiler]

Isn't the correct process to file a Chapter 13 to strip the lien then a Chapter 7?

[justbroke]

Isn't the correct process to file a Chapter 13 to strip the lien then a Chapter 7?

That would be redundant.

A Chapter 13 can be filed at anytime and you can use the Chapter 13 to cure arrears. A Chapter 13 doesn't require you to receive a discharge in order to be eligible to be in a Chapter 13. It just doesn't permit a discharge if you had a prior case under 7, 9, 11, 12, 13 for specific periods of time.

A Chapter 13 filed after a Chapter 7 -- known as a Chapter 20 -- can be useful when you have IRS tax debt. It can also be useful if you reaffirm a home in Chapter 7, but are in arrears and need to "cure" the arrears. The latter being used less frequently.