Legal Question in Bankruptcy in California

Re: Keeping the house

The answer depends on what the value of your house and the liens against it are, and whether it is your primary residence. I suggest you visit my web page at http://www.bklaw.com/bklaw and go to the Chapter 13 and 7 links for information on avoiding junior liens. Let me know if I can be of further assistance.

Re: Keeping the house

What you are asking relates to whether you may strip the lien of the 2nd trust deed in bankruptcy. You may be able to do this in a Chapter 13 bankruptcy, IF, the value of your home DOES NOT exceed the amount you owe on your 1st trust deed. In order for this to work you would what to invest the money to get a formal appraisal of your home from a certified residential appraiser. If the numbers are right, a motion to strip the lien could be filed. If you were successful, that 2nd trust deed would be treated merely as an unsecured creditor (just like the credit cards). The amount the 2nd gets paid would depend on the percentage proposed to be paid to unsecured creditors (i.e. 0% to 100%, depending on the other facts of your case).

We offer free consultations, so do not hesitate to contact me for further details.

Marcus G. Tiggs

213-625-0161