The newest Minnesota Lawyer provides an excellent blog post from about the subject out of lien stripping
Lien Removing
Once the post is out of time, it does a great jobs from explaining brand new opinions at the rear of this new process. It is a process from inside the Chapter 13 bankruptcies associated with people who has next mortgage loans. It needs to be the right position where in actuality the worth of the residence is lower than the bill towards first mortgage. In principle if the fresh new homestead deserves lower than the bill to the first-mortgage, then second financial isn’t a protected obligations.
One makes and you will documents a part 13 case of bankruptcy where in fact the second home loan is placed inside the with the unsecured debts. Read more