Stripping Your Second Mortgage through Chapter 13. According to Section 506 of the Bankruptcy Code, any lien can only be deemed a secured claim if the asset on which it is based has a value sufficient to satisfy that lien. If your property has been devalued to a level less than what is owed on your second mortgage,
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Stripping A Second Mortgage In Chapter 7 And 13 In most jurisdictions, lien stripping is not allowed if you choose to use the Chapter 7 bankruptcy filing process. Traditionally, you must qualify for Chapter 11 or Chapter 13 in order to strip off any kind of second loan, mortgage or other lien on a property.
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