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littlebird10155 · Sep 23, 2012, 12:50 PM

In Indiana the statue of limitations on a promisary note is ten years I do believe. So is it also true that after a chapter 7 bankruptcy that the second mortgage lien will go away. Ever . I realize that a possible agreement could settle it but we are doing everything possible after nine years of several unjustifide and devastating economic events and it is all we can do to pay our first mortgage and make other ends meet. Our property has been in my family for four generations and walking away or selling is not an option we want to consider. My spouse is not happy about spending every thing on a home that is never going to show equity .
We are willing to wait it out and pay on first mortgage but if after the market goes back up and we pay on it seeing the equity rise is it possible that the second mortgage company hold a lien indefinitely and penalties continue to climb.

JudyKayTee · Sep 23, 2012, 01:29 PM

Originally Posted by littlebird10155

In Indiana the statue of limitations on a promisary note is ten years I do believe. So is it also true that after a chapter 7 bankruptcy that the second mortgage lein will go away. Ever . I realize that a possible agreement could settle it but we are doing everything possible after nine years of several unjustifide and devistating economic events and it is all we can do to pay our first mortgage and make other ends meet. Our property has been in my family for four generations and walking away or selling is not an option we want to consider. My spouse is not happy about spending every thing on a home that is never going to show equity .
We are willing to wait it out and pay on first mortgage but if after the market goes back up and we pay on it seeing the equity rise is it possible that the second mortgage company hold a lein indefinately and penalties continue to climb.

Liens don't go away until they are paid off. Are you asking about a promissory note or a mortgage? Your post mentions both.

Bankruptcy doesn't discharge mortgages - there's no need because they are secured. The property would be sold and then the first mortgage paid off first, followed by the second with whatever funds are left.