McNeal v GMAC-Strip downs in chapter 7 allowed
May 11, 2012OUTCOME: Strip downs in chapter 7 allowed
The Eleventh Circuit Court of Appeals, whose decisions control the bankruptcy decisions in Florida's courts, has recently ruled that underwater second mortgages on your house can be stripped away in a ... chapter 7 bankruptcy proceeding. In the recent past, this option was only available to chapter 13, 12 and 11 debtors. About 70% of all bankruptcies filed are usually under chapter 7. This is a tremendous ruling for the debtor!
