Reclassify A Second Mortgage Through Chapter 13 Lien Stripping
In these hard economic times, many homeowners across California have second mortgages which are entirely unsecured by the present market value of their home. If this sounds like your situation, Chapter 13 bankruptcy may be a viable option to help you secure a better financial future. Under Chapter 13 bankruptcy, it is possible to strip a second mortgage. However, Chapter 13 “lien stripping” can be a complex area of the law and requires the assistance of an experienced bankruptcy attorney.
More Than 30 Years Of Experience
At the California Law Office of Alec Harshey, we provide comprehensive bankruptcy representation. Our lead attorney, Alec Harshe y, has extensive bankruptcy experience and can explain the Chapter 13 lien stripping process and how it may apply to the specifics of your particular case.
How Chapter 13 Lien Stripping Works
Filing for Chapter 13 bankruptcy provides many benefits to the individual, such as debt reorganization, creating a three- to five-year repayment plan as well as the possibility of stopping home foreclosure. On top of these benefits, is the ability to strip second or third mortgages or other liens. While every case is different and there are many details to consider, the basic outline is this:
Chapter 13 allows you to reclassify the mortgage or lien on your home as an unsecured debt. Once this occurs, this debt can be placed in your repayment plan. The major catch to this is that you must complete the Chapter 13 repayment plan, otherwise the mortgage or lien would remain effective.
Why reclassify a second mortgage through lien stripping? Because, if you complete a 60 month Chapter 13 plan you have paid off a 20 – 30 year second mortgage in 5 years.
Contact The Law Office Of Alec Harshey
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.