Bankruptcy Alphabet: A is for Avoidance


Avoidance can be a good thing or a bad thing in the bankruptcy alphabet. Lien avoidance is a good thing when we are talking about your second mortgage. In chapter 13, if your first mortgage amount is more than the value of the home, then you may be able to strip your junior mortgage. Everyone refers to it as a lien strip, or stripping a mortgage, but it is really called lien avoidance under the [...]