Get Rid of a Second Mortgage

23 Jan Get Rid of a Second Mortgage

A Chapter 13 bankruptcy filing can get rid of a second mortgage if the balance of the first mortgage is greater than your home’s value. So can a Chapter 7 filing, in some places.

You’re having trouble paying the mortgage, especially for a home that has fallen in value, but you can’t think about moving because you have children, or just because it’s your home. I get that.

Chapter 13 gets rid of a second or third mortgage that is entirely underwater – that has no home value for its lien. My colleagues have posted before on this opportunity, this right you have from Congress for your much-needed fresh start. But Chapter 13 requires a three to five year repayment plan, based on what’s left over from your income after reasonable living expenses.

Chapter 7 is the bankruptcy type which has no repayments. Courts are split about a right to get rid of an unsecured mortgage in Chapter 7. The most recent case is out of the Eastern District of New York, and it rules that there is no difference between the two chapters on this issue. You can get rid of an unsecured mortgage without a repayment plan.

I’m Jed Berliner, and I do everything possible for your fresh start – including mortgage litigation.

Related Posts Plugin for WordPress, Blogger...
The following two tabs change content below.
L. Jed Berliner practices exclusively in consumer bankruptcy, foreclosure defense, and related consumer protection litigation such as credit card defenses and suing debt collectors. He established his Springfield, MA practice in 1988. Attorney Berliner is a regular and active contributor to the Bankruptcy Law Network, the Bankruptcy Roundtable, and the National Association of Consumer Bankruptcy Attorneys, three specialized consumer bankruptcy forums on the Internet, and is an informal mentor to regional practitioners. He is recognized by his peers as an expert in consumer bankruptcy issues. He thoroughly enjoys being rated "excellent" in his client surveys.

Latest posts by L. Jed Berliner, Western & Central Massachusetts Consumer Lawyer (see all)

No Comments

Sorry, the comment form is closed at this time.