What is a pond motion?

A Pond motion is a motion made in a chapter 13 Bankruptcy case where the debtor:

1. owns and lives (as his or her primary residence) in a residence which

2. has a second mortgage AND

3. the value of the house is less than the amount owed on the first mortgage as of the date the debtor files his or her bankruptcy petition

If the motion (named after an actual case, In rePond, 252 F.3d 122) succeeds, it removes the second mortgage from "secured" status. This means that the amount owed to the second mortgage company gets treated like any other unsecured debt, like a credit card. Once the debtor obtains his or her discharge the remainder of the second mortgage debt is no longer owed.

-Michelle Nobile, Esq.