Legal Question in Bankruptcy in California

Re: Filing banko on just my 2nd mort

You cant file bankruptcy on a debt secured by a deed of trust. If your property is worth less than the combined mortgages, and you have sufficient income, then I may be able to reduce part of the mortgage principal by filing a chapter 13 bankruptcy. A second house has no exemption in bankruptcy so of there is any equity it will be lost to the trustee. Call if you are serious about setting up an appointment

Re: Filing banko on just my 2nd mort

Actually, a BK discharge eliminates your responsibility to pay secured debts as well as unsecured debts; but because the lien remains, you must keep up the payments if you wish to retain the property. If you surrender the property, the creditor cannot pursue you for any deficiency because the debt was, indeed, discharged.

You cannot reduce the principle owed on your primary residence in a Chapter 13; but it may be possible to "strip" the 2nd lien if it is totally unsecured (ie. the property is worth less than what is owed on the 1st) and treat the debt as unsecured ... but not in a Chapter 7.