Lien Stripping in Bankruptcy
If your property has multiple mortgages and its value has dropped, lien stripping in bankruptcy may help you eliminate junior liens. A bankruptcy lawyer can help you reduce secured debt and protect your financial future.
Remove Second Mortgage Debt
Reduce Secured Obligations
Protect Your Property
Free Case Evaluation
How Lien Stripping Works in Bankruptcy
Lien stripping is a legal process available in Chapter 13 bankruptcy that allows you to remove certain junior liens from your property. This typically applies when your property is worth less than the balance of your primary mortgage.
If a second or third mortgage is completely unsecured, meaning there is no remaining equity after the first mortgage, the lien may be stripped and treated as unsecured debt.
At the end of a successful Chapter 13 repayment plan, the stripped lien may be permanently removed, reducing your overall debt burden.
Eliminate Junior Liens
Lien stripping allows you to remove second or third mortgages that are no longer supported by property value.
Convert Secured Debt to Unsecured
Stripped liens are treated as unsecured debt and may be reduced or discharged through bankruptcy.
Available Through Chapter 13
Lien stripping is typically only available in Chapter 13 bankruptcy, not Chapter 7.
Reduce Long-Term Debt
Removing junior liens can significantly lower your total financial obligations over time.
The Bankruptcy Process
1
Consultation
Review your property value, mortgage balances, and eligibility for lien stripping with a bankruptcy lawyer.
2
Property Valuation
Determine whether your junior lien is fully unsecured based on current property value.
3
Filing Your Case
File a Chapter 13 bankruptcy case and request lien stripping through the court.
4
Completion of Plan
After successfully completing the repayment plan, the lien is removed from your property.
Why Clients Choose Our Firm
- Free initial consultation
- Experience handling lien stripping cases
- Clear guidance on property valuation and eligibility
- Strategic planning to reduce secured debt
- Dedicated support throughout the process
Lien Stripping FAQ
Meet Your Debt Relief Attorney
Melanie Travare
Principal Attorney & Founder
Melanie Tavare helps homeowners reduce secured debt through legal strategies such as lien stripping in bankruptcy. She provides clear guidance and practical solutions to help clients protect their property and move forward financially.
Legal and Financial Resources
U.S. Bankruptcy Court
https://www.uscourts.gov/services-forms/bankruptcy
U.S. Department of Housing and Urban Development (HUD)
https://www.hud.gov
Consumer Financial Protection Bureau (CFPB)
https://www.consumerfinance.gov/consumer-tools/debt-collection/
National Foundation for Credit Counseling (NFCC)
https://www.nfcc.org/