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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…
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Supreme Court to hear cases regarding chapter 7 lien stripping

The Supreme Court granted certiorari in two Chapter 7 lien strip cases today. Cases are Bank of America v Toledo-Cardona and Bank of America v Caulkett. In the 11th Judicial Circuit, court have permitted chapter 7 debtors to strip wholly unsecured…
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Eighth Circuit Permits Lien Stripping

In a ruling issued August 28, 2014, the Eighth Circuit Court of Appeals followed the other seven federal appellate courts in permitting stripping of a wholly unsecured junior residential mortgage in a chapter 13 plan. Jamie and Keeley Schmidt…
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8th Circuit Court of Appeals takes “Lien Stripping” case under advisement

The 8th Circuit of Appeals heard arguments on Wednesday March 12 in a case involving whether wholly unsecured junior second mortgages can be stripped in chapter 13 bankruptcy. A ruling will be issued “in due course,” which will likely be…
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How to Maximize Your Time in a House That is Going into Foreclosure by Filing Chapter 7 Bankruptcy

Part 4 in a series on how we help people in underwater homes When I talk to someone who is going into foreclosure, I ask them if they want to save their house, and 9 out of 10 people say “yes.” So usually the best way to do that is by way…
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8th Circuit dismisses appeal challenging chapter 13 lien strip

A long-awaited decision was issued last week by the 8th Circuit Court of Appeals, dismissing a chapter 13 trustee’s appeal of a decision by the 8th Circuit Bankruptcy Appellate Panel, which had noted that the concept of lien stripping is noncontroversial…

I am facing foreclosure. What should I do?

When a person is facing foreclosure, most of the time they have already tried to modify their loan, and were turned down. But if you have not done that, you should try -- I can virtually assure you that it will be a long and cumbersome and frustrating…

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…