Mortgage Issues In Bankruptcy

14 Jul 7th Circuit Splashes Cold Water on Chapter 7 “Lien Stripping” Hopes

Over the past dozen or so years, the bankruptcy process known as chapter 13 lien stripping has become universally accepted by the courts. Recently, advocates of lien stripping have expanded their efforts in the next logical direction: gaining judicial recognition of lien stripping in chapter...

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11 Jul The Curious Case Of Bankruptcy, The Mortgage Company And Reaffirmation.

Bankruptcy generally discharges or re-organizes a debtor’s obligations. This often includes any mortgage that the debtor owes. In a Chapter 7 bankruptcy, the debts can go away but the liens often remain. The debtor either pays the mortgage or loses the property. In a chapter 13, the...

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10 Jul Forcing the Mortgage Holder to Take Back a Home through Chapter 13

Using bankruptcy to surrender a home that has become unaffordable is nearly as common as using bankruptcy to stop a foreclosure so that a home can be retained. The question whether to keep a home when filing bankruptcy is usually answered by comparing the amount...

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12 May “Chapter 20” Lien Stripping Allowed by Fourth Circuit Appeals Court

The U.S. Court of Appeals, Fourth Circuit, has become the first U.S. Court of Appeals to approve "chapter 20" lien stripping. Although virtually all U.S. bankruptcy courts allow the "stripping" (vacating and eliminating) of completely unsecured junior mortgages on homestead real estate, the Fourth Circuit...

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26 Apr Trouble Getting a Mortgage Modification? Get Your Bankruptcy Court to Help!

Homeowners experiencing financial difficulties can avoid losing their homes by getting a mortgage modification. The trouble many people have is getting their mortgage company to agree to grant them an affordable modification. Recently, several Bankruptcy Courts have gotten involved in the mortgage modification process. The Courts...

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