Strip Additional Mortgages on Your Home, While You Still Can

One of the benefits of filing for Chapter 13 bankruptcy is the option of “lien stripping.” With home values dropping, many times mortgages become more than the actual fair market value of the home. Chapter 13 lien stripping allows homeowners to strip off second and even third mortgages. This special power in Chapter 13 is only available in flat or declining markets. Once property values rise, the power to lien strip in Chapter 13 will be diminished or eliminated. Often these additional mortgages are home equity lines of credit or judgment property liens. Lien stripping can be a very complicated area of the law and requires a knowledgeable and experienced bankruptcy attorney.

With more than 10 years of experience, the Hedtke Law Firm can help you with Chapter 13 bankruptcy filings and lien stripping. We are very knowledgeable in assisting people with debt problems and bankruptcy as we have been doing it since 2010. Find out more about our exceptional bankruptcy services and call 951-335-5977 or e-mail us to schedule a free initial consultation with a Hemet lien stripping lawyer.

Reclassify Your Home Mortgages: Chapter 13 Lien Stripping

In any Chapter 13 bankruptcy filing, you can place unsecured debt into a three- to five-year repayment plan. This is beneficial because it allows you to have one manageable monthly payment. Chapter 13 lien stripping works by reclassifying your second or third mortgage from secured to unsecured debt. By doing so, your now unsecured debt can be part of the Chapter 13 repayment plan.

However, there is one important consideration with Chapter 13 lien stripping. You must successfully complete your Chapter 13 repayment plan within the three- to five-year window. Otherwise the mortgage or lien remains in effect. Every circumstance is different and there are many details in Chapter 13 lien stripping. Let our Hemet office discuss whether lien stripping is possible in your case and how to proceed going forward.

Contact Our Hemet Chapter 13 Bankruptcy office

Our experienced Hemet lien stripping attorneys can help you get a fresh start. The Hedtke Law Firm has been helping clients find solutions to their loan debt continuously for over 30 years. With offices in Moreno Valley, Upland and West Covina, we are ready to provide all of Riverside County residents with simple and straightforward advice. Call 951-335-5977 to schedule a free initial consultation.