SouthFloridaBankruptcyLawBlog

The avoidance or "lien stripping" of "underwater" second or other junior liens has been much in the news lately since the U.S. Supreme Court's ruling in the Bank of America cases. The Court held that wholly underwater second or other junior mortgages are not avoidable in a chapter 7 bankruptcy case.

Still Avoidable in Chapter 13 Cases

The bankruptcy code requires a chapter 13 debtor to file a chapter 13 plan. The chapter 13 debtor has the exclusive right to file a plan as chapter 13 is a voluntary proceeding.

Experts state that by early 2013, the amount of student loan debt in the United States surpassed $1 trillion and that nearly 20% of Americans households owe on student loans.

The discharge of debt in a chapter 13 case is granted after a person completes performance under his chapter 13 plan. Chapter 13 plan are generally three to five years in length.

What types of bankruptcy are available?