Can a second mortgage be eliminated in bankruptcy?

A second mortgage may be eliminated in bankruptcy if it is subordinate to your primary mortgage loan. When you file for bankruptcy, a judge orders your debts according to their legal priority. A second mortgage is always subordinate to your primary loan, and this can place it low on the repayment list. If you do not have funds to repay all of your debts, these low priority debts will be the first to disappear. Remember: you will be obligated to pay at least a portion of most of your debts in bankruptcy. Bankruptcy is most successful at eliminating interest and financing fees, but repaying principal on your debts may be mandatory, even on subordinate loans.