Filing Chapter 13 To Eliminate A Second Mortgage
Many people find themselves with negative equity in their home. If the value of your home falls below the balance owed on the first mortgage, Chapter 13 Bankruptcy provides the ability to eliminate the second mortgage lien. Once the Chapter 13 Bankruptcy is filed, a separate proceeding referred to as an Adversary Proceeding is initiated. This separate proceeding is filed to determine the value of your home and ensure that eliminating the second mortgage lien is appropriate. After the successful resolution of the Adversary Proceeding, your second mortgage lien will be eliminated upon discharge of the Chapter 13 Bankruptcy case. If you would like to learn more about your ability to eliminate a second mortgage lien, please contact Bishop Law Offices for a free consultation.