2nd Mortgage Stripdowns

With the economy currently in  recession, many homeowners are struggling to make their house payments.

With layoffs  beginning to pick up steam, many people are losing their jobs.

• If you lose your job and find you aren’t making enough money to pay your monthly bills, you may qualify for a Chapter 7 or Chapter 13 Filing.

To determine if you qualify for a bankruptcy under Chapter 7, you will need to complete a “Means Test” where your monthly income for the last 6 months is measured against the median incomes for your state. If your income falls below the median income in your state, you may be able to proceed with a Chapter 7 bankruptcy filing.

If you file for Chapter 13 bankruptcy and own a home with a 2nd mortgage, you may be able to get that 2nd mortgage deemed as an unsecured debt.

If the value of your home is less than the value of your first mortgage, your second mortgage can be classified as unsecured and paid off in as little as three years.

Upon successful completion of your Chapter 13 plan, you will be discharged of all your credit card debt, medical bills, and 2nd mortgage!!!.

Homeowners with mortgages that are contemplating bankruptcy should consult with a lawyer so they know all their options. Not everyone is going to be able to qualify for a “strip down”, but it’s in your best interest to know that it exists.

Consult with a professional and you can turn your financial situation around and move on to restoring your credit as you come out of bankruptcy.

I can help you find a good attorney.