Chapter 7 bankruptcy is often ideal for people with less significant assets and unsecured debts like credit card balances. Those with secured debts like car loans and mortgages may need to pursue a Chapter 13 bankruptcy with the help of an experienced Massachusetts bankruptcy law firm.

In recent years, the housing market crisis has found many people and families with higher mortgage balances than the home’s market value. It becomes difficult to sell such property to offset the balance and even more difficult if this individual owns more than one mortgage.

Luckily, there are relief options for such kinds of problems. Lien stripping is often the best and ideal solution to halt any foreclosure proceedings and eliminate any junior liens, including a second or third mortgage.

How Does Lien Stripping in Massachusetts Work?

A lien strip will convert your second mortgage from a secured debt (with a possibility of foreclosure if payments are missed) to unsecured debt. The bankruptcy court in Massachusetts orders the lender to remove its lien. Once the debt is categorized as unsecured, it can be wiped out or discharged.

Your bankruptcy attorney in Plymouth will help you file for Chapter 13 bankruptcy to eliminate the second mortgage and remove the lien.

However, you can only remove liens on second and subsequent mortgages if only the senior lien or lien on the first mortgage exceeds the property’s market value.

What Happens If I Have More Than Two Mortgages?

If you have three mortgages, you can remove liens on the second and third mortgages only if the value of your first mortgage is above the value of your house. If your house is also valued more than your first mortgage but not more than the combined balance of your 1st and 2nd mortgages, you can only remove the lien on your 3rd mortgage.


If your first mortgage is valued at $200,000 and the house’s value right now is $150,000, and a second mortgage of $50,000, you can strip off the second mortgage because the first mortgage is valued higher than the house value. If you add a third mortgage worth $30,000, you can also get rid of it.

But if your house is worth $225,000, then you can’t strip your second mortgage because it’s above your first mortgage value. But because the total balance of your first and second mortgage ($250,000) is greater than the value of your house ($225,000), you can remove the lien on the third mortgage.

Get in touch with your Lien release lawyer in Plymouth, MA, so that you can know exactly where you are and what steps you can take to achieve debt relief.

How Will Bankruptcy Help Me Remove My Second Mortgage?

Bankruptcy allows only unsecured debt to be discharged. Mortgage loans are secured loans and cannot be discharged because the liens will still survive the discharge. Therefore, immediately after a lien is stripped, it becomes an unsecured debt and is pretty much handled like a medical or credit card debt capable of being wiped out.

Once your Lien release lawyer in Plymouth, MA, files a Chapter 13 bankruptcy on your behalf, the court can wipe out the second mortgage. Lenders can no longer threaten you with foreclosure or try to collect on the loan. So, take action and file for that Chapter 13 bankruptcy to regain your financial freedom.

When Should I Expect My Second Mortgage to Be Wiped Out?

Once you file for lien stripping in Massachusetts through your Lien release lawyer in Plymouth, MA, the junior lien is immediately handled as a nonpriority, and you don’t have to pay for that mortgage. However, you will be required to complete the bankruptcy court process and adhere to the repayment plan given to you before the debt is discharged.

Usually, you will be required to pay a portion of this now unsecured debt through your Massachusetts Chapter 13 plan. Once you’re done with this plan, anything else unpaid on the mortgage is wiped out. So the earlier you file for Chapter 13 bankruptcy in Plymouth, MA, the earlier the lien will be stripped, and the earlier you stop paying for your second mortgage.

Note that the lien will only be removed after completing your plan and receiving a discharge order. Besides, if your case is dismissed before you complete your Chapter 13 repayment plan, the lien on your second mortgage won’t have been successfully stripped.

What Other Debts Can Lien Stripping Help with?

There are other types of loans bankruptcy law allows you to remove nonconsensual judgment liens from your property. If you had a judgment against you in court and the court attached that judgment to your house or one of your assets, you can also pursue to have it categorized as unsecured through bankruptcy.

Things like auto loans can also be reduced to a fair and current market value using the same bankruptcy laws. Therefore, don’t suffer in silence when going through financial pressure and harassment from lenders. Seek the legal advice of a qualified and experienced debt relief attorney in Plymouth, MA, to learn your options.

Family-Oriented Law Firm Helping Individuals and Families Preserve Their Homes

Finding yourself with an underwater mortgage is never a good place to be. It is a source of great stress, especially when you cannot keep up with the mortgage payments. Get a bankruptcy attorney’s advice immediately if you’re cornered and wondering what to do.

Working closely with a skilled Lien release lawyer in Plymouth, MA, can help you understand how best to reduce your debt and ultimately seek financial freedom. Our attorneys have helped families in Massachusetts protect their homes from foreclosures and can also help you. Schedule a FREE meeting with us to discuss your case with confidentiality.