Is Lien Stripping Right For You?

If you are facing foreclosure and contemplating filing for Chapter 13 bankruptcy, you have probably heard of lien stripping and are wondering if it could apply to your case.

Lien stripping is the process of peeling away second and third mortgages. These earlier mortgages add to your debt on paper, but they are no longer secured by collateral. Therefore, they can be stripped away, or discharged, along with other unsecured debt as part of the Chapter 13 process.

Lien stripping doesn't work in every Mississippi mortgage case. Your secondary mortgages must be wholly unsecured. You must be filing for Chapter 13, not Chapter 7. Even when lien stripping is appropriate for your situation, the mortgage banks that issued the earlier mortgages won't be paid anything in your restructuring. It's a complex bit of business.

When you talk to Heidi Milam about foreclosure and Chapter 13, bring paperwork showing how any second mortgages work. If they meet the requirements for lien stripping, we may be able to significantly reduce the amount of the total mortgage debt you will pay.

Talk to foreclosure attorney Heidi Milam at her Southaven office about all your Chapter 13 mortgage modification and foreclosure questions. Call our lawyer at 662-655-1605, or email her your questions.


We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.