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How can I get a second lien on a home released by the bank? It was included in a bankruptcy three years ago.

Gilbert, AZ |
Attorney answers 6


You can see if the lender will settle this for a lump sum of cash or you see if you are eligible to lienstrip in a Chapter 13. Although the debt was discharged, the lien remains as as good as gold and the lender is entitled to foreclose if you don't pay and can get paid in full, with accrued interest & penalties, when you sell or refinance the property. Hope this perspective helps!



Thank you so much. That clears things up. I have tried to settle. They won't settle. They won't even discuss it. So if I's basically a short sale? And will impact my credit once again?


I agree with the prior answer. Chapter 7 discharges the debt, but the lien remains. You can either negotiate for a lien release with the second lienholder, usually for a lump sum payment. Or, you may be eligible to file a Chapter 13 to strip the lien.

This answer is for informational purposes only. This answer does not constitute legal advice, create an attorney-client relationship, or constitute attorney advertising. We are a debt relief agency. We help individuals and businesses file for bankruptcy protection under the Bankruptcy Code.


I agree with Mr. Jabbar and Ms. Bunce. The lien was not removed from the title of your house. Sorry.

Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.


The bank will not release the lien and you have to be careful that the equity is not so high that it invites the bank to begin foreclosure or trustee sale proceedings against you. They are likely standing down because there is no way for them to receive a recovery on the house if they start an action against you. It might have or in the future might likely change. The other thing is that you cannot sell the house without addressing this issue. If you have a lump sum of money you might be able to call the bank and ask what they will take to issue a lien release. You might want to talk with the lawyer who helped you with your BK to see if she/he will give you direction.


As was mentioned a chapter 13 would be your best bet to release the second mortage. That assumes the property is worth less than the debt of the first lender. Property values are beginning to increase in Phoenix so you should consider talking to an experienced chapter 13 attorney as soon as possible.

A chapter 13 bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. I am attaching a link to some free videos that explain how bankruptcy works. Most Arizona consumer bankruptcy attorneys offer a free consultation about the basics of bankruptcy.

Please take time to educate yourself about bankruptcy and to determine which attorney is the best to assist you in the process. Don’t assume the attorney is being completely honest about their experience and capabilities. Check them out. Avoid the attorneys who advertise on TV or profess a 100% success rate in their Internet ads. It costs hundreds or thousands of dollars for these ads and someone has to pay for them – the clients. These attorneys mass produce the work and do not offer the client the hands on assistance that is necessary in a well-planned bankruptcy. Normally these firms assign all or most of the work to paralegals and the client rarely talks to an attorney.

When interviewing the attorney ask them how long they have practiced bankruptcy law. Ask what percentage of their practice is focused on consumer work. Ask whether they are experienced in both chapter 7 and chapter 13 cases. Ask the attorney for references. Ask about their policy of returning phone calls. They should be committed to answering specific questions about your situation and help you understand your options. If, after talking with them you are still confused about the issues you raised, find another attorney. Check them out with the various ranking sources: such as, and the State Bar. An attorney is should be your guide through this process. They should educate you, be there to assist you in how to avoid pitfalls and help you plan for your future after bankruptcy. There are hundreds of “bankruptcy” attorneys in Arizona. Of those just a few will fit the criteria set forth above. Again, bankruptcy is a very complicated process and you want to use an attorney who will be there when you need them.

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This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the bankruptcy code requires that we call our firm a "debt relief agency." This information is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the related issues. Nor is this advice intended to create a client - attorney relationship. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state or locality regarding specific information.


If the 2nd lien on your home is not secured, you would need to file chapter 13 bankruptcy to be able to strip the lien from the propert with the specific order of the bankruptcy judge.I would recommend that you contact an experienced bankrutpcy lawyer in your area, to assist you with lien stripping of 2nd deed in chapter 13. Good Luck.

Madhu Kalra Kalra Law Firm 23720 Arlington Avenue, Ste 5 Torrance, Ca 90501 (310) 325-9012

Diane L Gruber

Diane L Gruber


Yes, time to discuss a possible Ch.13 with a BK attorney.

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