Wiping Out a Second Mortgage

 

Is 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 bankruptcy. This may be true. However, many factors exist in 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 since 1971 and Court-appointed Bankruptcy Trustee from 1971-2013, 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 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 7 bankruptcy or 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, you must provide proof of the home value.

Maybe you have read or heard about wiping out your second mortgage by filing a bankruptcy case. 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 all alternatives, including which type of case is better for you.

Secured Debt vs. Unsecured Debt

Secured debt is a debt that is attached to some form of tangible property. Secured debts include car loans and the mortgage on your home. If you are unable to repay these loans, your lender may repossess your car or foreclose on your property to settle the debt. Unsecured debt such as credit card debt, medical bills and personal lines of credit are not attached to property and are eligible for discharge in bankruptcy proceedings.

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) 685-8800 or e-mail us to schedule a free consultation. We have offices in Atlanta, Cumming, Dallas, Douglasville, and Duluth, with evening and weekend appointments available.