Plymouth Attorneys Helping Clients Eliminate Second Mortgages
Many homeowners in Massachusetts have more than one mortgage on their home. Taking out a second mortgage may have seemed like a good idea at the time, but if you’re in serious financial trouble, you may regret this decision. Fortunately, in some cases, it is possible to eliminate your second mortgage.
Take the first step toward a fresh financial start by contacting the second mortgage attorneys at Benner & Weinkauf as soon as possible. Tell us more about your unique financial situation so we can determine the best solution for you.
How Can You Eliminate Your Second Mortgage By Filing For Chapter 13 Bankruptcy?
Many people can eliminate their second mortgage simply by filing for Chapter 13 bankruptcy. This is because of a process that is known as lien stripping.
You may qualify for lien stripping if the current market value of your home is less than the amount of your first mortgage. For example, say your first mortgage is worth $400,000 and your second mortgage is worth $100,000. If your home’s current market value is less than $400,000, you may qualify for lien stripping in a Chapter 13 bankruptcy proceeding.
If you qualify for lien stripping, the court will convert your second mortgage from a secured debt to an unsecured debt. Basically, this means your second mortgage will be treated the same way that credit card debt, medical debt, and other unsecured debt is treated in a Chapter 13 bankruptcy proceeding.
The court will require you to create a repayment plan that explains how you will make monthly payments on your debts. Once the plan is approved by the court, you will be required to comply with its terms. This means you will need to make monthly payments on these debts over the course of three to five years. At the end of this time period, the court will discharge whatever debt remains. So if you still owe $90,000 on your second mortgage, it will be discharged at this time, meaning you will no longer have to pay this balance.
Can You Eliminate Your Second Mortgage By Filing For Chapter 7 Bankruptcy?
It is possible to eliminate your second mortgage by filing for Chapter 13 bankruptcy, but it is not possible to eliminate your second mortgage by filing for Chapter 7 bankruptcy. There are many benefits to filing for Chapter 7 bankruptcy, but the elimination of a second mortgage is not one of them.
Schedule A Free Consultation With Our Skilled Attorneys in Plymouth Now
Do you need to eliminate a second mortgage on your home? If so, our bankruptcy attorneys at Benner & Weinkauf can help. For decades, our attorneys have helped countless clients in Plymouth secure their financial freedom by eliminating their second mortgages. Let us put our extensive resources and legal knowledge to work for you.
To learn more about how we can help–and your legal options–schedule a free consultation with our team today. You can reach us by calling 774-404-8321 or submitting your information using the form on this website.