Legal Question in Bankruptcy in California

Ability to discharge second mortgage

I have tried to get the second and third mortgage company (same company 2loans) to try to consolidate or lower the payments or some way work with me. They will not. If I file for bankruptcy can I continue to make the payments on my first mortgage, and discharge the second and third? or must I discharge all 3 and let the house go into foreclosure?


Asked on 12/23/00, 2:25 am

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Ability to discharge second mortgage

First of all, depending on how much non-exempt equity is in the house, you never won't have to give up the house as long as you stay current on the mortgage payments. Under certain circumstances you can strip the lien of the junior deeds of trust (not the same as discharging. The debt itself will be discharged regardless. You are asking about the security interest). In California, in order to do this, the fair market value of the property must be less than the total of the liens senior to the one you are trying to remove. If that is the case, you can strip the lien in a Ch. 13 case.

If you would like a free consultation, visit my web page at http://www.bklaw.com/ and give me a call at your convenience and I will be happy to assist.

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Answered on 12/27/00, 11:53 am


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