But it takes an adversary proceeding to strip off the negative equity in a bankruptcy case. Most mortgagees cannot afford such a proceeding.
yes, hency my statement about a bankrupt who can afford it.
HOWEVER, an adversary is not always needed (at least pre2005) if you had a lender who was willing to negotiate and see the futility of their position.
What I have seen of late is lenders who have no clue about business and are in a “screw everyone” mindset.
While the 2005 reform only managed to increase ch13’s very slightly, I think the trend to more plans than liquidation is going to force trustees to get into the stripping mix in order to preserve the income source for the other creditors.