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Does Chapter 7 Bankruptcy Dissolve 2nd Mortgage Liability

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  • 01-02-2009, 03:06 PM
    NeedSomeKnowledge
    Does Chapter 7 Bankruptcy Dissolve 2nd Mortgage Liability
    My question involves bankruptcy in the state of: Maine

    A have a private seller held 2nd mortgage that was purchase money on a home. If the first forecloses, will Ch7 BK protect the me form the seller - 2nd liability? What can I do to protect myself from it? I have no assets and no money.:confused:
  • 01-02-2009, 06:10 PM
    Betty3
    Re: Does Ch7 BK Dissolve 2nd Mortgage Liability
    If you have no assets & income, you should qualify for a chapter 7 bankruptcy. Contact a bankruptcy attorney & discuss your situation. You can usually get an initial consultation for free.
  • 01-02-2009, 07:14 PM
    Mr. Knowitall
    Re: Does Chapter 7 Bankruptcy Dissolve 2nd Mortgage Liability
    If your second mortgage is wholly unsecured, you can attempt to strip it off in a Chapter 13 proceeding. If its partially unsecured you can try to cram it down. But if it's secured, it's secured.

    You can talk to your lawyer about the possibility of what's sometimes called a "Chapter 20 bankruptcy" - filing a Chapter 13 proceeding after getting a Chapter 7 discharge. I can't promise you that your local bankruptcy court will be receptive to that double bankruptcy, or that it's in your best interest, so talk it over with a bankruptcy lawyer.
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