Chapter 13 bankruptcy allows a debtor to remove a secondary or junior lien when the lien is completely underwater. A lien is completely underwater when the value of the property is eaten up by a superior lien. However, secondary or junior liens cannot be stripped or removed in a Chapter 7 bankruptcy.
If you are wanting to remove a second lien or are thinking of filing for bankruptcy, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.