Chapter 13 Bankruptcy – 2nd Mortgage Stripping

The use of a Chapter 13 bankruptcy can be a very useful tool if the person qualifies for this chapter and has a 2nd mortgage on a home, which has a value that is less than the value of the 1st mortgage. So if the home is valued at $1 less than the first mortgage then the 2nd mortgage is considered to be completely unsecured and therefore it can be treated as an unsecured debt under the Chapter 13 bankruptcy.  Upon completion of the payments on the Chapter 13 bankruptcy the 2nd mortgage can be considered to be extinguished. We have used this chapter for many clients to give them a much lower debt load post bankruptcy and to put them back on track to financial health.  To consider this option you need to retain counsel that is well equipped and versed in the bankruptcy code. Only about 1 out of 10 of our clients are appropriately situated for a Chapter 13 and only some of those have a house that is valued correctly to use the code to discharge the 2nd mortgage. So please retain competent counsel if you are seeking and considering relief under the bankruptcy code.   Call today 810-245-0813