Legal Question in Bankruptcy in California

Re: filing bakruptcy

You cannot "pick and choose" between debts...if you file for bankruptcy, you must list all of your debts.

Re: filing bakruptcy

Attorney Deming is correct, you cannot "pick and choose" which debts you will list in bankruptcy. Its an all-or-nothing proposition.

If I infer correctly what you may have meant, there is a second answer to your question. If you are asking if you can "strip" your second mortgage from your house (discharge that portion of the debt and remove the lien from the house), the answer is almost certainly no. Currently, there is no provision in the Bankruptcy Code that allows a homeowner to do what is referred to as lien-stripping on his primary residence. You cannot reduce the debt on your home though bankruptcy. You can either continue to pay both mortgages, can cure a default on the mortgages, or walk away from the house and discharge all liability, but you cannot remove your second, stay in the home and only repay your first mortgage. I say "almost certainly" because there are some attorneys who use a completely different approach and through bankruptcy attempt to remove liens from the debtor's primary residence, but I have no idea if they have been successful in doing so, and I know it involves litigation within the bankruptcy which is always risky.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.