Legal Question in Bankruptcy in California

Chapt. 7 lien stripping

We have a 1st mortgage for $323.000 and a 2nd for $64,000 for a total of $387,000 on our home. The latest online appraisal lists the value range to be $286,000 to 320,000. If we request the Bankruptcy Court to strip the 2nd who determines the value of the home and when during the proceedings does this happen? With RE values dropping so fast would it be worth waiting a little longer?


Asked on 12/21/07, 2:17 pm

2 Answers from Attorneys
Allen Farshi Law Offices of Allen Farshi

Re: Chapt. 7 lien stripping

Your answer lies in the case Nobel v. American savings. The case is on point and answers your question in detail.

Read more
Answered on 12/26/07, 12:55 am
Carl Starrett Law Offices of Carl H. Starrett II

Re: Chapt. 7 lien stripping

Even before the bankruptcy reform laws went into effect in 2005, lien stripping was not allowed in a Chapter 7 case involving secured claim on the debtor's residence. You won't be able to request the court to strip the second mortgage from the property regardless of the value at the time you file your case.

Read more
Answered on 12/21/07, 5:51 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California