If you live in Littleton, Aurora or Centennial and owe more on your house than what it’s worth, a Chapter 13 bankruptcy may help reduce what you owe. This can be done through a process called lien stripping, which is available in a Chapter 13 bankruptcy.
Stripping a Second Mortgage in Centennial Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy in Centennial, Greenwood Village and across Colorado, lien stripping means you can remove junior liens, also known as second or third mortgages. How is this possible? Your second mortgage is a secured debt, but it becomes an unsecured debt through the process of lien stripping. Without lien stripping, your property could be foreclosed on if you fall behind or miss your mortgage payments. With lien stripping, however, the lien will be removed and you will only be responsible for paying the remaining unsecured debt in your Chapter 13 payment plan. Once you complete your Chapter 13 payment plan, the remaining debt on the mortgage will be wiped out / discharged. Now before you get too excited, remember, this process is only for junior liens. You will still be responsible for paying the first lien.
Chapter 13 Bankruptcy Attorney in Aurora: When Lien Stripping is Possible
In Aurora, Parker and everywhere else in Colorado, you can strip a second mortgage only if your first mortgage is greater than what your house is worth. Your second mortgage won’t be removed until you complete your Chapter 13 payment plan. In other words, you cannot strip a second mortgage lien if your Chapter 13 case gets dismissed and you do not receive a Chapter 13 bankruptcy discharge. You’ll only want to consider lien stripping if your second mortgage has become too difficult for you to afford. Consult experienced bankruptcy attorney Barry Arrington for more information about stripping a second mortgage in a Chapter 13 bankruptcy.
Lien Stripping Attorney in Denver: Call Today
If you have more questions about stripping a second mortgage lien in Denver, Highlands Ranch or any other part of Colorado, contact bankruptcy attorney Barry Arrington today. The process of lien stripping can be complex and you need a legal advocate on your side to make sure you get the financial relief you deserve in your Chapter 13 bankruptcy. Call Barry today to set up a free initial consultation meeting to discuss the possibility of stripping your second mortgage in more detail.
If you would like more information about lien stripping in Colorado, contact bankruptcy attorney Barry Arrington today for a free consultation at 303-205-7870. Or, submit the “Get Bankruptcy Help Now” form. He will fight to give you the best, fresh start possible.