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How do current bankruptcy laws impact mortgages?

April 26, 2017Bankruptcy impact Laws mortgages

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How do current bankruptcy laws impact mortgages?

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Under current bankruptcy laws, debtors who qualify can file a Chapter 13 repayment plan bankruptcy proposing to strip unsecured liens, other than a first mortgage, from their home. Lien stripping is available if a second mortgage is completely unsecured (i.e. the fair market value of the home is less than the balance on the first mortgage).