Minnesota Mortgage Cramdown in Chapter 13

A new case indicates that you may be able to get rid of a 2nd mortgage in bankruptcy. The key is that the 2nd mortgage must be completely unsecured, meaning it cannot have any equity in your property. At this point the most recent decision from the Bankruptcy Appellate Panel seems to indicate a willingness to strip off unsecured 2nd mortgage. This would obviously be a big advantage for our clients who have 2nd and 3rd mortgages on their properties. This process has still not been approved by the Minnesota Bankruptcy Judges. If you have questions about a mortgage cramdown in Minnesota give our office a call.