Strip Additional Mortgages on Your Home, While You Still Can
One of the benefits of filing for Chapter 13 bankruptcy is the option of “lien stripping.” With home values dropping, many times mortgages become more than the actual fair market value of the home. Chapter 13 lien stripping allows homeowners to strip off second and even third mortgages. This special power in Chapter 13 is only available in flat or declining markets. Once property values rise, the power to lien strip in Chapter 13 will be diminished or eliminated. Often these additional mortgages are home equity lines of credit or judgment property liens. Lien stripping can be a very complicated area of the law and requires a knowledgeable and experienced bankruptcy attorney.
With more than 30 years of experience, the California bankruptcy lawyers at the Debt Relief Legal Clinic can help you with Chapter 13 bankruptcy filings and lien stripping. We are very knowledgeable in assisting people with debt problems and bankruptcy as we have been doing it since 1975. Find out more about our exceptional bankruptcy services and call 877-663-3287 or e-mail us to schedule a free initial consultation with a San Diego lien stripping lawyer.
Reclassify Your Home Mortgages: Chapter 13 Lien Stripping
In any Chapter 13 bankruptcy filing, you can place unsecured debt into a three- to five-year repayment plan. This is beneficial because it allows you to have one manageable monthly payment. Chapter 13 lien stripping works by reclassifying your second or third mortgage from secured to unsecured debt. By doing so, your now unsecured debt can be part of the Chapter 13 repayment plan.
However, there is one important consideration with Chapter 13 lien stripping. You must successfully complete your Chapter 13 repayment plan within the three- to five-year window. Otherwise the mortgage or lien remains in effect. Every circumstance is different and there are many details in Chapter 13 lien stripping. Let our San Diego lien stripping lawyers discuss whether lien stripping is possible in your case and how to proceed going forward.
Contact Our San Diego Chapter 13 Bankruptcy Attorneys
Our experienced San Diego lien stripping attorneys can help you get a fresh start. The Debt Relief Legal Clinic has been helping clients find solutions to their loan debt continuously for over 30 years. With offices in San Diego, Bonita and Vista, we are ready to provide all of San Diego County residents with simple and straightforward advice. Call 877-663-3287 or contact us online to schedule a free initial consultation.
Read also: Differences Between Chapter 7 And Chapter 13 Bankruptcy, Chapter 13
