Riverside Bankruptcy Lawyers – Many people are unaware of the power of bankruptcy in helping to wipe out mortgage debt. With housing prices down, one of the things we run into a lot, in our Riverside Bankruptcy Attorneys practice, is people who are paying more in mortgages on their homes than the property is actually worth. Some people are carrying enough debt that they are facing the threat of foreclosure. However, a reduction in payments is possible. A second mortgage is often something that can be stripped away with a bankruptcy filing under Chapter 13.
Chapter 13 Removes Secondary Liens
A Riverside Bankruptcy Attorney can help remove this additional financial burden of a second mortgage or junior lien. Once the 2nd is eliminated, not only does it bring the amount you are paying on into line with the equity value of the property, but it can help you later, when market prices rise. You will regain the equity, as housing values rebound, but without the additional burden of payments. Plus, the extra cash left in your pocket can help you with the first mortgage payments.
A Chapter 13 bankruptcy filing can also help you with car payments or credit card debt. Many times, when folks come into the Law Offices of Harold D. Thompson, Riverside Bankruptcy Attorneys, they are struggling to meet payments on their mortgages and other debts. We are experienced bankruptcy attorneys with over 35 years of experience in helping people regain their financial freedom. In many cases we see, the client doesn’t qualify for a Chapter 7 bankruptcy, but a Chapter 13 filing is right for them. This is especially true if they are facing foreclosure. If you have a second mortgage, discuss Chapter 13 and how it can remove your second mortgage with your bankruptcy attorney. However, Chapter 13 bankruptcy is a complex process, so you need to have an experienced Riverside Bankruptcy Attorney advocate for you. We will stand by you every step of the way, and go to court for you.
How Does It Work?
The process of lien stripping starts with an appraisal of the property. Usually, this is sufficient for the bankruptcy court to approve the removal, but sometimes the mortgage company files an opposition. At this point, the court determines if the value of the property is below the value of the first mortgage. Your Riverside Bankruptcy Attorney works with the court and arranges for discharge of the second mortgage according to terms proposed in the Chapter 13 payment plan. Discharge of the second mortgage comes to pass when the bankruptcy is discharged, after all payments are made on the plan. At that point, the 2nd is eliminated entirely.
Support the New Mortgage Relief Legislation
Additional new legislation has been proposed in Congress that would allow a bankruptcy judge to reduce or otherwise modify the first mortgage, as well. This would include changing the terms of the loan, including lowering the interest rate or reducing the amount due. We, as Riverside County Bankruptcy Attorneys, strongly encourage you to support passage of this new bankruptcy legislation, which will help financially distressed homeowners immeasurably!
Are you struggling with falling property values, a bad economy, and mortgages on a house whose worth has dropped below what you owe? We at the Law Offices of Harold D. Thompson, Riverside County Bankruptcy Attorneys will work with you to get a fresh start on your finances. You don’t have to simply walk away or go into foreclosure! Call TODAY at 888.558.2992 for a FREE evaluation, to see if Chapter 13 is right for you. We are here to help!
As Riverside Bankruptcy Lawyers helping people with Chapter 7 & Chapter 13 Bankruptcy debt relief we are proud to serve the following areas of Riverside County: Riverside, Palm Springs, Banning, Beaumont, Blythe, Calimesa, Canyon Lake, Cathedral City, Corona, Coachella, Desert Hot Springs, Hemet, Indian Wells, Indio, Lake Elsinore, La Quinta, Menifee, Moreno Valley, Murrieta, Norco, Palm Desert, Perris, Rancho Mirage, San Jacinto, Temecula, Wildomar and all unincorporated areas of Riverside County.
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