Is it possible to strip a second mortgage in Chapter 13 Bankruptcy?

It is possible to strip a second mortgage in Chapter 13 Bankruptcy in West Virginia. Stripping a mortgage means reducing the amount of money owed on a mortgage, or eliminating it completely, by getting the court to declare it unsecured debt. In a Chapter 13 Bankruptcy, this is done by filing a motion to “value” the secured debt on the property. If the court determines that the current value of the property is less than the amount owed on the mortgage, the difference between the two (the “strip”) can be declared unsecured debt and discharged at the end of the bankruptcy. However, this only applies to second mortgages, not first mortgages. The first mortgage must usually be paid according to the terms of the loan contract. A person filing a Chapter 13 Bankruptcy in West Virginia must meet certain requirements in order to qualify. The court must determine that the debtor is able to afford the repayment plan and that the payments are being made in good faith. The payments must also be made on time, and the debtor must complete a series of credit counseling classes. Additionally, the debtor must not have had a bankruptcy discharged within the past six years. If all of these criteria are met, the court may declare a second mortgage unsecured debt, and approve a motion to strip it. This can provide the debtor with much-needed financial relief and help them to regain control of their finances.

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Is it possible to strip a second mortgage in Chapter 13 Bankruptcy?

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