Can I STRIP a Mortgage in a Chapter 7 Bankruptcy???

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In this video, Josh Sternberg from Sternberg Law Group clarifies a common misconception about Chapter 7 bankruptcy and mortgage liens. Here's a breakdown of the key points:

Key Points:
Mortgage Liens in Chapter 7: You cannot strip mortgage liens, including second mortgages, in a Chapter 7 bankruptcy. This is an important distinction because some people mistakenly believe that filing for Chapter 7 will eliminate their second mortgage, but that is not the case.

Judgment Liens: While you cannot strip mortgage liens in Chapter 7, you can remove judgment liens. A judgment lien arises when a creditor, such as a credit card company, sues you for an unpaid debt, wins the lawsuit, and attaches the judgment to your home. In Chapter 7, you can strip this type of lien, just as you can in Chapter 13.

Chapter 13 vs. Chapter 7: The confusion often arises because stripping second mortgages is possible in a Chapter 13 bankruptcy, but not in Chapter 7. If someone has filed for Chapter 7 and later hears from a second mortgage lender, they might mistakenly think the mortgage was eliminated. However, the mortgage debt remains intact despite the bankruptcy filing.

Conclusion:
Josh emphasizes the importance of understanding these differences to avoid confusion. If you have any questions, Sternberg Law Group is available to provide further clarification.

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#sternberglawgroup #foreclosureattorney #mortgageattorney #bankruptcy #loanmodification Disclaimer: The information provided in this video is for general informational purposes only and is not intended to be legal advice. Viewing this video does not create an attorney-client relationship. If you require legal advice, please consult a licensed attorney in your area