When a lien is stripped in Chapter 11 or Chapter 13, the security interest is removed from the property, but the debt itself does not fully go away.

For homeowners facing financial pressure, lien stripping is only available through Chapter 13 or Chapter 11, not Chapter 7.

Under certain bankruptcy laws, unsecured mortgages can be reduced or removed when the property value is lower than the total owed on senior loans. This process, known as lien stripping, allows homeowners in Chapter 13 or Chapter 11 to eliminate second or junior mortgages that are no longer backed by equity.