Question by Claudia M: Can the 2nd mortgage loan on my home (80-20) be erased in a bankruptcy? The home is worth less than the first
I have two mortgages and I plan to go into bankruptcy. I heard that I can get the second loan be erased through bankruptcy since it is ulnsecured debt, because the value of the home is totally less than even the first loan?
Is it possible? under Chapter 13 or even Chapter 7?
Best answer:
Answer by FRANK Mortgage Broker
A loan does not get “erased.” It is a matter of determining if what funds are available to pay the loan through liquidation of assets, or repayment plan.
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