No if you live in Maryland, Virginia, North Carolina, South Carolina or Western Virginia.
Yes if you live in Florida, Georgia, or Alabama.
The United States Supreme Court has ruled that undersecured loans (the loan payoff is higher than the value of the property) may not be stripped off in Chapter 7. As a result the Fourth Circuit (Maryland, Virginia, North Carolina, South Carolina, Western Virginia) ruled that the same reasoning should apply to completely unsecured junior mortgages (the loan payoff on all senior liens is greater than the value of the property). On the other hand the 11th Circuit (Florida Georgia, Alabama) ruled that the Supreme Court case considered different facts, and therefore a different result should apply.
The United States Supreme Court may someday resolve this split in the circuits. Until then you will have to check carefully your jurisdiction to determine your rights and obligations.
