Saturday, July 14, 2012
Get Rid of Credit Card Debt and Your Second Mortgage!
In a Chapter 13 bankruptcy case, you may be able to permanently remove your second mortgage if there is no value to secure it - and never pay it again. How can this be? In today's poor economic climate, real estate values are plummeting. This is one instance where your home's declining value can actually help you. For example, if you have a first mortgage where you owe a balance of $200,000 and a second mortgage (or home equity line) where you owe a balance of $75,000 - but your home is only worth $200,000 or less, then you may be able to "lien strip" the second mortgage and never pay it again. Simply, if your home's value will not support the second mortgage, the bankruptcy code allows you to remove it.
Chapter 13 will also allow you to get rid of unsecured debt such as credit cards and medical bills.
So, if you are facing the loss of your home, but you earn enough money to pay your first mortgage - Chapter 13 may allow you to get rid of your credit card debt and get rid of your second mortgage.
This can mean the difference between saving your home or becoming homeless.
Learn more about Chapter 13 and how it can benefit you.