If you’re trying to make a decision which approach to bankruptcy is best for you, the possibility of writing off a second mortgage can be a powerful reason to consider filing Chapter 13. Chapter 13 carries certain disadvantages for consumer debtors as compared with Chapter 7. The fees are higher, the bankruptcy case continues for years instead of months, and the debtor usually has to pay some creditors who might get nothing if he filed Chapter 7, however there are also good reasons to file Chapter 13.
Chapter 13 lets debtors catch up with delinquent mortgage payments in an orderly way. But with real estate values down an average of 30% over the last few years, an increasingly common reason to file Chapter 13 is to strip off an “underwater” second (or third) mortgage. One of the benefits of Chapter 13 bankruptcy over Chapter 7 is flexibility. There are just lots of ways and options with your financial situation in a Chapter 13 than in Chapter 7. One of the big ones is stripping an underwater second mortgage:
Lien stripping is not for amateurs. There are downsides in the lien stripping process and many lienstrip motions filed by inexperienced lawyers are denied. It truly takes an expert lawyer, who specializes in bankruptcy and has a firm grasp of how lienstrip motions work, to file your lienstrip motion successfully.
At Lozano Law Offices, we are Chapter 13 lien stripping experts. We have extensive experience and success with lien strip motions. We can help you successfully strip off your 2nd mortgage or home equity line of credit through Chapter 13 bankruptcy. Call us today at (510) 538-7188 to set up a free initial consultation or your may contact us online.