Is Chapter 13 Lien-Stripping the Right Approach for Your Situation?
If you are underwater on your home, you may have heard that it is possible to strip your second mortgage lender's lien on your home in Chapter 13 bankruptcy. This may be true. However, there are risks to the very complicated lien-stripping process that you should know about.
At Gingold & Gingold LLC, our Atlanta second mortgage relief attorneys — Ira D. Gingold, who has been a bankruptcy attorney and Court-appointed Bankruptcy Trustee since 1971, and Jamie L. Gingold, who has been practicing bankruptcy, real estate and business law since 2001 — have the experience to advise you on the best option for your specific situation.
Understanding the Benefits and Risks of Stripping a Lien on Your Home
If your home is worth less than what you owe on your first mortgage, the Court in a Chapter 13 bankruptcy can turn your second mortgage from a secured debt to an unsecured debt, potentially making it so that you don't have to repay it. However, there are some risks to this:
- If you do not complete your Chapter 13 repayment plan, you will be behind on your second mortgage, and your lender may be able to foreclose on your home.
- Depending on your income and the amount and type of your other debts, even if you strip a lien, you may still be required to repay the debt in your Chapter 13 repayment plan.
Maybe you have read or heard about getting rid of your second mortgage by filing Chapter 13. This process is not as straightforward as it may seem, so come to us so we can explain your legal rights.
Some clients can get relief from their second mortgages through the lien-stripping process, but we also know that it is not the right option for everyone. We can help you explore other alternatives, including whether Chapter 7 bankruptcy is better for you.
Fulton County Attorneys · Stripping a Second Mortgage · Free Consultation
To learn more about what our experienced bankruptcy lawyers can do to get you relief from your second mortgage and other debts, call us at 404-963-9508 (toll free at 877-419-0450) or e-mail us to schedule a free consultation. We have offices in Atlanta, Cumming, Dallas, and Douglasville, and evening and weekend appointments can be arranged.