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Second Mortgages Cannot be Stripped in Chapter 7 Cases

The United States Supreme Court held this week in Bank of America v. Caulkett that wholly unsecured second mortgages cannot be stripped in Chapter 7. “Wholly unsecured” means that the house is worth less than the first mortgage balance.…
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SCOTUS hears arguments in chapter 7 lien strip case

This week the United States Supreme Court heard oral arguments in a case involving stripping off a wholly unsecured junior mortgage in a chapter 7 case. There has been a split amongst the federal circuits, with some permitting it, but most not…

What are my options on my second mortgage?

I will start out with a very simple premise for my Chapter 7 and Chapter 13 clients, which I call the 10 word rule: If you want to keep your house, make the payments. (Same rule applies for cars). The 10 word rule covers 95% of what you need…