Chapter 13 and Second Mortgages
A chapter 13 bankruptcy filing may be the tool you need.
If your property has depreciated in value to the point where it will not cover your second mortgage, then you may be able to “strip off” the second mortgage and treat it as an unsecured debt in your chapter 13 bankruptcy filing, which may be a substantial reduction to your overall debt balance. This applies to third mortgages too.


























