Can I Get A Lien Strip in Chapter 7 Bankruptcy?

No. Lien strips can only be sought with a Chapter 13 bankruptcy filing or Chapter 11 bankruptcy filing. Furthermore, lien stripping is a complicated procedure with many variables and it is important to consult with a knowledgeable bankruptcy lawyer. The Frutkin Law Firm in Phoenix, Arizona, has decades of experience with all types of bankruptcy filings.

A lien is a debt, and a secured lien is a debt that is tied to an asset such as your home. A lien strip means to have a lien, such as a second mortgage, reclassified as unsecured. During Chapter 13 bankruptcy payments, secured liens are paid first, and unsecured liens are paid later or not at all. This can amount to a huge difference in how much repayment must be made.