Legal Question in Bankruptcy in California

I'm in CA. I have already filed a CH 13, but am confused about converting to a CH 7. I had a condo w/a 1st and 2nd. 2nd was stripped in the BK. Paying the 1st directly. I am told that if I convert to a CH 7, that the second mortgage re-instates. If the 2nd is technically unsecured due to the home value, why would I have to repay that loan under a CH 7? Currently, I am only paying for my car, and the attorney fees in the CH 13 plan. Seems silly to me...


Asked on 7/02/10, 2:01 pm

1 Answer from Attorneys
Asaph Abrams Law Office of Asaph Abrams

That's a good argument, but you are told correctly. You need to at least complete a chapter 13 in order to remove a second mortgage.

This is opinion provided for informational purposes, does not address all contingencies, and is not legal advice. Retain legal counsel before acting or refraining from any bankruptcy-related action. Specifically, the interplay among lien strips, chapter 7 and chapter 13 is a complex area subject to change in law.

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Answered on 7/02/10, 5:13 pm


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