Second Mortgage Lien Stripping
With the recent downturn in the housing market, many homeowners are upside down on their home mortgages. The value of their home is actually less than what they owe.
One little known fact about bankruptcy is that it allows some individuals the opportunity to gain debt relief from an upside down mortgage. While you may not discharge debt from a first mortgage loan and still keep the secured property, you may be able to strip a second mortgage lien with a Chapter 13 bankruptcy, while still keeping your home.
Here is how it works:
- With a Chapter 13 bankruptcy you may strip a second home mortgage lien if the value of your home is less than what you owe on your first mortgage.
- You thus transform your second home mortgage debt from a secured debt to an unsecured debt. All or part of this unsecured debt can potentially be discharged at the completion of your Chapter 13 bankruptcy.
- You are still required to pay the remaining debt on your first home mortgage. However, you may keep your home and discharge all or part of your second home mortgage debt.
I am home mortgage debt bankruptcy attorney Charles Covey. I have been helping clients find solutions to difficult debt challenges for more than 30 years. I have helped thousands of my clients obtain debt relief by using my knowledge of the U.S. Bankruptcy Code. If you are struggling with debt and want to learn more about bankruptcy, I am pleased to meet with you personally to answer your questions.
Contact a Canton Bankruptcy Attorney
My law office is located in Peoria, Illinois. Call 309-674-8125 to schedule your free consultation. You may also contact me by e-mail. I have represented clients in Peoria, Pekin, Canton, Galesburg and throughout Central Illinois.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.