Stripping A Second Mortgage
If dark clouds of unmanageable debt are looming over your financial affairs, you would do well to look for silver linings wherever you may find them. The possibility of stripping a second mortgage as a benefit when filing a Chapter 13 takes many people by pleasant surprise. Be aware that a second mortgage cannot be stripped if you file a Chapter 7 in Illinois.
Your Defaulted Second Mortgage Payments And Risk Of Foreclosure
When you took out a second mortgage, your lender most likely made you aware that you were taking on additional secured debt. The lender may have stipulated that defaulting on the second mortgage could result in foreclosure of your home. However, in the years since you took out that second mortgage, the value of your real estate may have fallen substantially. If the price your home could fetch on the open market has dropped to less than what you owe on your first mortgage, a Chapter 13 bankruptcy judge may treat your second mortgage as an unsecured debt. In this case, the second mortgage may be dischargeable through your Chapter 13 plan.
Every Case Is Unique
Keep in mind that any and all statements on this website are general in nature and are not intended to serve as legal advice. Do not attempt to predict the outcome of filing bankruptcy, selling your home through a short sale or otherwise obtaining debt relief as a mortgage holder without knowledgeable legal advice.
You May Or May Not Be Able To Strip A Second Mortgage Through Bankruptcy
Edwin L Feld & Associates, LLC, has the reputation, the experience and the knowledge that you can rely on as you seek answers to questions about how a bankruptcy would play out in your case. Stripping a second mortgage is an opportunity that many of our Chapter 13 clients have been able to take advantage of. Please consult with a lawyer at our firm to discuss your particular debt problems and the potential impact of a bankruptcy on your mortgages.
Struggling With An Illinois Mortgage? Bankruptcy Attorney Can Advise You On Effective Debt Relief Options
Get the information you need to make the right decisions when mortgage troubles are upon you. Our debt relief law firm can advise you on issues such as mortgage stripping, stripping of judgment liens on your property and other potential advantages of bankruptcy that you may not have considered. To schedule a free consultation with a Chicago area bankruptcy lawyer at any of our convenient office locations, contact us toll free at 888-645-4357. You may also contact us by email.