07-20-2009, 10:24 PM
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Senior Member
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Join Date: Nov 2006
Posts: 3,504
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Quote:
Originally Posted by John Smith
There are certain kinds of liens that can be eliminated under certain chapters of bankruptcy, however. For example, if there is not enough value in the collateral after subtracting any senior lienholders' interests, then junior liens can be discharged as unsecured debt..
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That's a great example........someone with a first and second mortgage, whose property value has declined.......house goes into foreclosure and isn't sold for enough to pay off the secondary and usually a deficiency judgment isn't even worth their time.
Great example. |