"Underwater" Mortgages Still Avoidable in Chapter 13
Description:
The avoidance or "lien stripping" of "underwater" second or other junior liens has been much in the news lately since the U.S. Supreme Court's ruling in the Bank of America cases. The Court held that wholly underwater second or other junior mortgages are not avoidable in a chapter 7 bankruptcy case.
Still Avoidable in Chapter 13 Cases
Wholly underwater second or other junior liens do though remain avoidable in chapter 13 cases. A person is able to propose a chapter 13 plan providing for the avoidance of such wholly underwater mortgage or other junior lien.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
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