Frequently Asked Questions

Who can benefit from lien stripping?
If your property value is less than the balance of your first mortgage, you are eligible for lien stripping. This is common when it involves property that has fallen in value.

Who’s eligible for lien stripping?
Any individual whose first mortgage is less than one million dollars.

What happens during the lien stripping process?
During the lien stripping process you are required to file for a Chapter 13 Bankruptcy. This is a type of Court-supervised debt repayment program and can only be filed if your property value is less than the balance owed on your first mortgage. You must arrange and pay for an appraisal of your property in order to follow through with the process.

What else should I know about a Chapter 13 Bankruptcy?
A Chapter 13 Bankruptcy usually lasts about 3 years, but can last up to as long as 5 years. How long it lasts depend on your income level. During a Chapter 13, you typically cannot use any credit unless you receive permission from the Court.

Can companies or LLC’s participate in lien stripping?
Unfortunately, no. It is only available to individuals.

What if I have filed for bankruptcy before, am I still eligible for lien stripping?
Yes. Even if you have filed for bankruptcy in the past you can still participate in lien stripping.

What if I owe more on personal property?
If you owe more on personal property, such as a car, television, computer, etc, in many cases the lien can be “crammed down” so that you pay only the present value of the property in order to keep it.

Is there a number I can call for more information?
Yes, feel free to give the Lienstripping.com Hotline a call if you have any questions or would like more information about lien stripping. The number is 702-789-1067.