In chapter 13 bankruptcy, you may strip a lien arising from a second mortgage, home equity line of credit. You will no longer be required to make payments for the second mortgage during the bankruptcy and, upon successful completion of your three- or five-year chapter 13 bankruptcy, the lien will be formally removed.

However, a lien must meet two conditions in order to be avoided. Simply not having any equity is not enough. Firstly, the value of your home must be less than the principal owed to the first mortgage. Secondly, the lien to be avoided must arise from a deed of trust recorded after the deed of trust of the first mortgage.

Lien strips aren’t limited to second deeds of trust! Any lien arising from a subsequent deed of trust (a third, fourth, etc.) may be avoided so long as it meets the aforementioned two conditions.