What Is a Lien Strip? This issue was addressed in In re Maynard, B. Schedule a Free Consultation.

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In a case called In Re Strasbourg , an Eastern District of Michigan bankruptcy judge ruled that, when a property is owned as a "tenancy by the entireties" a form of joint ownership available only to married co-owners under Michigan law , a single-filing debtor may strip a lien even if the spouse is not also filing the Chapter 13 bankruptcy. If a fractional interest becomes property of the bankruptcy estate be careful. What Is a Lien Strip?

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If the provisions of Section a 2 A or B are met then the community property of both spouses becomes property of the estate when one spouse files a bankruptcy petition. Wood In California, as part of the Ninth Circuit, the answer should be yes.

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Wood In California, as part of the Ninth Circuit, the answer should be yes. Although bankruptcy is a Federal legal process that takes place within a Federal bankruptcy court system, that Federal system is broken up into administrative sub-areas: If the provisions of Section a 2 A or B are met then the community property of both spouses becomes property of the estate when one spouse files a bankruptcy petition.

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So why can a wholly unsecured or underwater lien be stripped if only one spouse files for bankruptcy? Her spouse did not file with her. Long story short, you can file a Chapter 13 bankruptcy and get rid of a second mortgage entirely.