Maria owes $225,000 in a first mortgage and $32,000 in a second mortgage. Her home is valued at $215,000. If she lien stripped, the results would be:

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Lien stripping allows a homeowner in bankruptcy to remove junior liens, such as second or third mortgages, when the home's value is less than the amount owed on the first mortgage. In this case, since the home's value ($215,000) is less than the amount owed on the first mortgage ($225,000), the entire second mortgage ($32,000) becomes an unsecured debt, leaving the first mortgage unchanged.

Maria Owes $225,000 in a First Mortgage and $32,000 in a Second