Removing a second mortgage is known as lien stripping. This is possible in a Chapter 13 bankruptcy. In order to eliminate your mortgage you must meet the following conditions: The second mortgage must be totally unsecured. This means that the first mortgage must be in excess of the fair market value of the home. The property must be your primary residence. You must be able to qualify for Chapter 13 bankruptcy. That means that you must have sufficient income to pay your living expenses and the required Chapter 13 payments under a repayment plan. Also, there are limits to the amount of debt that you are allowed to have in a Chapter 13 bankruptcy. Note that if you have a mortgage and then get a home equity loan, the home equity loan is a second mortgage. Although a judge in Long Island allowed the elimination of a second mortgage in a Chapter 7 bankruptcy, it is unlikely that this decision will stand once it goes to a higher court. Pursuant to New York law this website is considered attorney advertising. Copyright © 2004-2010 by Jeffrey B. Peltz P.C.. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.