Bankruptcy Lawyer | “Lien Stripping” Still Available?
Bankruptcy Lawyer .Just as filing for Chapter 13 stops auto repossession, it can also protect your home from foreclosure. Your Chapter 13 debt repayment plan should enable you to catch up on your mortgage payments within 36 to 60 months AS WELL AS POTENTIALLY ELIMINATING ANY SECOND AND EVEN THIRD MORTGAGES THAT YOU MAY HAVE ON YOUR HOME. The bank or mortgage company cannot foreclose on your home as long as you make payments according to the plan.
Chapter 13 is often referred to as reorganization bankruptcy because it allows debtors to create a payment plan that reorganizes their debt. Payment plans are based on income instead of assets and are usually spread out over three to five years.
“Lien stripping” of underwater mortgages or other junior liens is still available under chapter 13 bankruptcy. The much publicized U.S. Supreme Court ruling in the Bank of America cases only held that lien stripping cannot be done in chapter 7 bankrupty cases.
In order to “strip” (ie. avoid) a second priority mortgage or other junior lien, they must generally be wholly underwater unless the obligation’s had already ballooned.
The lien stripping is accomplished with the appropriate provision in the chapter 13 debtor’s proposed chapter 13 plan. The applicable valuation and avoidance motion are also filed. Pursuant to a lien strip, a lien is avoided and the debt is provided for as a general unsecured claim. If you are considering “stripping” your mortgage, contact a qualified bankruptcy lawyer.
Call attorney David Pinkston, bankruptcy lawyer, for a free consultation today: (904) 389-5880. If you are thinking about #bankruptcy, #chapter13bankruptcy or #foreclosure in the Jacksonville, Florida area, you should call attorney David Pinkston. David is very experienced with all aspects of bankruptcy law yet very personable and easy to talk to. Call Us Today! (904) 389-5880