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Stripping Your Second or Third Mortgage in Chaptr. – lawyers – For a lien strip to occur the attorney must first have sufficient evidence that the home is worth less than what is owed on the first mortgage. If the first mortgage "eats up" the total value of the home, then an adversary case can be brought within the Chapter 13 Bankruptcy to strip the second or third mortgage.
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Law Offices of Richard Egozcue, Orlando – juridipedia.com – Lien-Stripping In "Chapter 20" Bankruptcy – Orlando Bankruptcy Attorney | Bankruptcy Solutions Some debtors who are homeowners and have a second mortgage on their home may be strategically better served financially by first filing for Chapter 7 bankruptcy, and after this case is concluded, filing for chapter 13 bankruptcy protection.