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Simple English definitions for legal terms

lien-stripping

Read a random definition: Aid to Families with Dependent Children

A quick definition of lien-stripping:

Lien-stripping is a practice used in bankruptcy where a mortgagee's secured claim is split into secured and unsecured components. This allows the debtor to modify the terms of the mortgage and reduce the amount of debt to the market value of their residence. However, the U.S. Supreme Court has prohibited lien-stripping in all Chapter 7 cases and in Chapter 13 cases involving a debtor's principal residence. The Bankruptcy Reform Act of 1994 also modified the Bankruptcy Code to prohibit lien-stripping in Chapter 11 cases involving an individual's principal residence.

A more thorough explanation:

Definition: Lien-stripping is a practice in bankruptcy where a mortgagee's secured claim is divided into secured and unsecured components. The claim is then reduced to the market value of the debtor's residence, allowing the debtor to modify the mortgage terms and reduce the debt amount.

For example, if a debtor owes $200,000 on a mortgage for a home that is now worth $150,000, lien-stripping would split the claim into a secured portion of $150,000 and an unsecured portion of $50,000. The unsecured portion can be discharged in bankruptcy, and the debtor can modify the mortgage terms on the remaining secured portion.

However, the U.S. Supreme Court has prohibited lien-stripping in all Chapter 7 cases and in Chapter 13 cases involving a debtor's principal residence. The Bankruptcy Reform Act of 1994 also modified the Bankruptcy Code to prohibit lien-stripping in Chapter 11 cases involving an individual's principal residence.

These examples illustrate how lien-stripping works and the limitations on its use in bankruptcy cases.

lien state | lien waiver

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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