Chapter 13, could it leave someone with a windfall of equity?

[crzzy1]

All the examples I read online assumes the persons primary residence is under water...

If  someone invested in a big way and failed in a big way and declares Chapter 13...

Now he has to sell off all his houses. Except his car and primary residence (Which by law he's allowed to keep).

The 2nd and 3rd mortgages for a $million or so are discharged.

The first mortgages (Which by this time is almost paid off), is renegotiated so that he can re-start on making payments. 

At this point, it seems by the laws of bankruptcy, his creditors could be out big time 

Would this individual then get rewarded by getting to keep huge equity in the primary residence?

Thanks,

crzzy1

[Charles Andersen]

No. You can only lien strip second and third mortgages if they don't attach to any equity in the property, making them unsecured in fact of property equity but still secured by a paper. Since the first is almost paid off, at least one of the other mortgages attaches to equity.

Equity in terms of mortgage lien strips does not take into account any exemptions you may have in a homestead.