Stripping A Second Mortgage In Chapter 7 And 13
In most jurisdictions, lien stripping is not allowed if you choose to use the Chapter 7 bankruptcy filing process. Traditionally, you must qualify for Chapter 11 or Chapter 13 in order to strip off any kind of second loan, mortgage or other lien on a property.
However, recently, the 11th Circuit Court of Appeals, which has jurisdiction over Alabama, Florida, and Georgia, decided that people may be able to use lien stripping in a Chapter 7 bankruptcy filing.
At Kingcade Garcia McMaken, located in Miami, we keep up to date with the law because this is the best way to serve our clients. Our attorneys want to know every option available to help you readjust your financial situation so it is easier and more beneficial. To learn more about this court decision and how this may apply to your situation, contact us today to speak with our experienced lawyers during a free initial consultation.
Lien Stripping May Do More Than You Think
What many people may not realize is that lien stripping is not confined to just a second mortgage. Using the method properly, you can eliminate a:
- Second mortgage
- Home equity loan
- Home equity line of credit (HELOC)
- Other types of junior liens attached to a property
Obtaining second mortgage relief is possible, but it takes legal precision. Our lawyers understand how to analyze your finances to see if it is possible to strip a second mortgage and what bankruptcy process best fits your needs.
Bankruptcy laws are designed to protect debtors. Once your bankruptcy petition is completed, you should be better positioned to move forward and have the tools you need to succeed. Stripping a lien off a property can also help you keep your home or other real estate property.
Using Chapter 7 To Strip A Second Mortgage
Using Chapter 7 and the ability to strip a second mortgage is relatively new and may not last long if the legislature changes the law in Florida or another court decision reverses this decision, so it is your best interest to contact us today and learn more during a free initial consultation.