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postheadericon Use bankruptcy to get rid of a second mortgage!

Use bankruptcy to get rid of a second mortgage!  

One of the things I enjoy most is using the bankruptcy code in a way that gets my client extra benefits that they were not expecting.  One of the advantages of a Chapter 13 Bankruptcy is the possibility to get rid of a second mortgage.  This trick is allowed under Chapter 13 bankruptcy only and is not available to people who filed for Chapter 7 bankruptcy relief.

In a Chapter 13 bankruptcy, the debtor, through his or her attorney, proposes a plan to repay some or all of the debt.   The Chapter 13 bankruptcy plan must be approved by the bankruptcy court.  A good Chapter 13 bankruptcy attorney will know how to help you propose a plan to keep your home and your cars, while keeping your repayment to other creditors as low as possible.

You can keep your home and get rid of a second mortgage in some circumstances!  Remember that a second mortgage is s consensual lien.  Since you agreed to it, you must repay it under most circumstances.  However, if your home’s value does not exceed the amount you owe on the first mortgage, you may be able to get rid of a second mortgage.  For example, if you owe $100,000 on a first mortgage and your house is worth $90,000, you can get rid of a second mortgage balance completely!  Why is that?  Because the value of the home does not support the second mortgage at all.

However, you cannot get rid of a second mortgage if the value of the house exceeds the first mortgage.  If you owe $100,000 on a first mortgage, and your house is worth $101,000, you cannot get rid of a second mortgage at all, no matter how much it is.

The process to get rid of a second mortgage is a complicated one.  You must hire an experienced Chapter 13 Bankruptcy attorney and make sure that you and your attorney agree to undertake this complicated process.  Your attorney may charge you more for this services, but it will almost always be worth it.

Sean C. Paul, Chapter 13 Bankruptcy Attorney can help you get rid of a second mortgage

Sean C. Paul is licensed to practice law in the State of Missouri.  He practices in the Federal Courts of the Eastern District of Missouri, the Southern District of Illinois, and the Central District of Illinois. He worked for one of the largest firms in the country as a bankruptcy attorney before starting this firm.

Sean C. Paul will give you the individual attention you deserve.  He understands the importance of your financial decisions.  He wants to help you make the best choice, whether it’s a Chapter 7 Bankruptcy, a Chapter 13 Bankruptcy, or something else entirely.

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Sean C. Paul, Attorney at Law
8917 Gravois Rd. St. LouisMO63123 USA 
 • 314-827-4027

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