Handling A Second Mortgage During Bankruptcy

The more assets you have, the more you worry about losing if you file for bankruptcy. Luckily, if you plan correctly, you can maintain all of your property. An experienced bankruptcy lawyer can help you consider your full range of options. At the Royal Oak and Flint offices of Bidwell Tovarez PLLC, we help families across Michigan evaluate their options when trying to pay off a first and second mortgage while managing their debt.

You May Be Able To Strip It Off Completely

Your first mortgage is your most important mortgage, and these days, for most people with two mortgages, the first one eats up all the equity in the property. This will most likely leave the second mortgage completely unsecured. We can help you file an adversary proceeding to strip that lien off your property and leave you with just one mortgage.

With property values dropping dramatically, many more second mortgages are now unsecured, making lien stripping a valuable option. Dedicated to bankruptcy law, our attorneys know how this process works and can help you take advantage of the current laws to maximize your financial security.

Chapter 13 Is Typically The Best Choice

To get rid of your second mortgage and save your home, you will have to file Chapter 13 bankruptcy. When you file for Chapter 13 bankruptcy, you are agreeing to pay a portion of your debt back to your creditors over a three- to five-year period. You must complete your Chapter 13 case to strip the second mortgage lien. You cannot strip a second mortgage through Chapter 7 bankruptcy.

Contact Us For A Free Consultation

If you have multiple mortgages, you may be afraid it is too late to save your home. That is simply not true. We will help you find the best option for your family so you can get a fresh start. Located in Royal Oak and Flint, we help families across Michigan stop foreclosure. Call 248-237-3718 or contact us online today for a free initial consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.