Lien Stripping Defence: Detailed Analysis

During the bankruptcy process, understanding the distinction between secured and unsecured debt is very important. If you are contemplating bankruptcy, it is critical for you to thoroughly comprehend the bankruptcy process. The bankruptcy attorneys at Chang and Carlin, LLP in Chicago can help you understand bankruptcy procedure and take the steps necessary to ensure that you emerge in the best financial position possible. One such necessary step is “Lien Stripping”.

If you have a second mortgage on your home and are in danger of losing it to foreclosure, Chapter 13 may offer a solution. In Chapter 13 Bankruptcy there’s a procedure called ‘Lien Stripping’, that changes a secured second mortgage or home equity line of credit into an unsecured debt, which not only eliminates your monthly payment, but usually lowers your total debt by thousands of dollars.

Our experienced Bankruptcy Lawyers in Chicago can help you through the process, which involves the following steps:

·         1. Our experienced Chicago Chapter 13 Bankruptcy attorneys can help you determine whether you qualify for Lien Stripping or not and, if you do, we’ll help you remove the lien from the second mortgage.

·         2. A Chapter 13 debtor can ask the bankruptcy court to strip away the second mortgage debt because the value of the home is less than the amount of the first mortgage. An attorney can help you determine the fair market value of your property, so that you can establish whether there is enough equity to secure a first mortgage. If the fair market value of your property is less than the total amount of money due on the first mortgage, a second and third mortgage can be stripped off the house. By stripping off this lien, which is treated as an unsecured claim, you may be able to wipe out debt in order for you to more easily pay back your existing debt as part of your Chapter 13 payment plan.

 “Lien stripping” is one of the most powerful forms of debt relief available in Chapter 13 bankruptcy. If you are considering filing Chapter 13 bankruptcy in Chicago and are interested in the possibility of “lien stripping” to eliminate or reduce liens or mortgages on your home or other property, please contact Chang and Carlin, LLP today. For an initial FREE Bankruptcy Legal Consultation, contact our law offices in Chicago.

Disclaimer: The content provided by Chang and Carlin, LLP is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Foreclosure services, or Real Estate legal services, call our law firm at 1-866-790-8601 for a Free Legal Evaluation. Chang and Carlin, LLP serves clients in Chicago, Schaumburg. Joliet, and Warrenville.