Wiping Out a Second Mortgage in Bankruptcy
If you own a home in the Oakland area, you have seen its value decline in the past several years–most likely by hundreds of thousands of dollars. So now you’re wondering how you will ever pay that second mortgage off.
On top of that problem, you’re drowning in credit card bills, back taxes, student loans and a car payment. Welcome to the American Dream–Bay Area style!
Here’s something amazing that can change your life around: A chapter 13 bankruptcy can wipe out a second mortgage forever! That means that you can finish a chapter 13 case and be left with no debt other than a first mortgage on your home! Sweet!
It’s Called Lien Stripping
This whole wipe-out-the-second-mortgage thing is called “lien stripping” because the bankruptcy court strips away the lien on the second mortgage. Lien stripping is permanent. Once you finish the case, the second mortgage is gone forever!
There are a lot of rules that go along with lien stripping, but here are the basics:
- You have to file a chapter 13 case; a chapter 7 won’t work.
- You have to make monthly payments in a chapter 13 case for a three to five year period (usually five) in order complete the case successfully.
- You have to convince the Oakland bankruptcy court that the value of your home is less than the amount you owe on the first mortgage.
If you can do those things, you can wipe out your second mortgage. Pretty incredible! You can save up to $200,000 or more by filing a chapter 13 bankruptcy.
Want to know more? Call Oakland bankruptcy attorney James Pixton at (510) 451-6200 and make an appointment to come in and talk about lien stripping. You can also fill out the form below. We’re serious when we say YOUR NEW LIFE BEGINS TODAY!