Eliminating Refinance Debt On Your Family’s Home
Many families bought homes before the housing market collapsed, stacking on second and third mortgages. Now, with deflated property values, many homeowners are left with property worth far less than the debt owed.
If your home is underwater and you have multiple mortgages or other debts attached to your property, we may be able to help you. At Marcus H. Herbert & Associates, our Paducah lien-stripping attorney can work with you to get rid of debt on your home through bankruptcy.
We have more than 20 years of experience helping clients in western Kentucky and southern Illinois with debt relief, loan modifications and lien stripping. Contact our law firm today for a free consultation.
Stripping Second Mortgages In Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy, you may be able to remove a lien on your home. If the value of your home is less than the amount of debt you owe on your first mortgage, you can remove a second mortgage or line of credit on your home.
For example, if you have a house worth $100,000 with a first mortgage debt of $101,000 and a second mortgage of $40,000, you may be able to strip off your second mortgage if you file for Chapter 13 bankruptcy. Your second mortgage would become unsecured, allowing you to discharge that debt after you have completed your payment plan.
An Experienced Lawyer Can Help You Remove A Judgment Lien
If there is a judgment from a lawsuit attached to your property, you may be able to remove the lien through bankruptcy. There are two ways bankruptcy can remove a judgment lien:
- If it is less than 90 days old, then you will be able to avoid the debt.
- If the judgment was recorded more than 90 days before your bankruptcy, you may be able to avoid that debt if it impairs your homestead exemption under state law.
Free Consultation About Home Debt
To learn more about cramming down your debt, stripping a second mortgage, discharging debt and other debt relief options, contact our law firm online or call us at 270-443-0303. We can help you get your debts discharged and stop foreclosure through bankruptcy.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.