14 Aug 2012

Eliminating Second Mortgages in Chapter 7

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The Eleventh Circuit Court of Appeals recently ruled that a chapter 7 debtor could strip a second and third mortage off their homestead property. Prior to this decision, debtors could only strip second and third mortages in chatper 13, which meant you would have to be in a payment plan for 3-5 years. Now it can be done in as little as 4 months, the time it takes to complete a chapter 7.

So, assuming the fair market value of your home is less than what you owe on your first mortage, we may be able to eliminate your second mortgage or Home Equity Line of Credit. Call us today to schedule a free consultation to discuss this and other ways bankrutpcy could help you eliminate debt.