Legal Question in Bankruptcy in California

Re: Confused

You cannot obtain a discharge in a Chapter 7 bankruptcy unless it has been more than 8 years since your last filing. You may, however strip a second mortgage and obtain a discharge in a Chapter 13 if it has been more than 4 years since you filed the Chapter 7.

You can discharge the second mortgage, but cannot strip it in a Chapter 7 bankruptcy. So, you would still be able to keep your home, but if the holder of the second mortgage ever decides to foreclose, you would then lose your home.

At lease this is true in San Bernardino and Riverside Counties.

Re: Confused

Not sure what you mean by "file with it". If you're asking whether the lien on your 2nd mortgage can be removed in a Chapter 7 case, the answer is no. The underlying debt, however, can be discharged.

Re: Confused

You can only strip off the second lien in a Chapter 13, not 7 (and only if the value of the house is less than the amount owed on the first mortgage)

Re: Confused

To add to Attorneys Markus and Shem-Tov's answers, they are correct that you cannot strip the lien on your house in a chapter 7, and that you can in some circumstances in a chapter 13. My bigger question is when you say you are "thinking of filing chapter 7 for the second time" - when did you last file? You must have eight years between your second filing and your first discharge if you are going to receive a discharge in the second chapter 7. I would suggest that you need to consult with an attorney - many bankruptcy attorney provide a free initial consultation in bankruptcy matters. It would be worth your time to see if you even qualify.

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