What Is Lien Stripping? Is This Option Available and Right for You?
Lien stripping is one of the most powerful and important measures available as part of a Chapter 13 bankruptcy filing. Essentially, its availability means that if you — like many thousands of other Florida homeowners — have a burdensome second mortgage that is making it impossible for you to pay other bills, it may be possible to eliminate that specific debt.
At the Price Law Firm, our lawyers and staff know that people in all kinds of circumstances borrowed against their homes in the belief that their market value would continue to increase. It made sense at the time, but the market crash and economic slowdown has put a lot of people who did this in a very tough bind. A high percentage are facing foreclosure or struggling with other debts today.
Some Chapter 13 Bankruptcy Filings Clear Second Mortgage Liens
You may have heard of lien stripping and wondered whether it could provide needed relief for you. The basic concept is that, if your second mortgage is no longer supported or “backed” by the current value of your home, it has become an unsecured debt and could be dischargeable as part of your Chapter 13 bankruptcy plan. A lien placed on your household goods by a so-called household finance company may also be subject to lien stripping.
No one should file Chapter 13 bankruptcy without understanding all the benefits and obligations associated with this form of debt relief. Determining whether lien stripping is an option for you — and whether it will provide sufficient relief to help you get back on track — requires a thorough review of your overall financial situation by a focused bankruptcy lawyer.
Get Answers From an Attorney With Decades of Debt Relief Experience
Applying decades of experience and clear focus on helping people resolve difficult financial problems, our law firm is a proven resource for people in need of foreclosure defense and overall debt relief.
If you have questions about lien stripping, what to do if you are falling behind on your primary mortgage or other issues, please schedule your free consultation today. Simply call our Orlando metro area firm at 407-834-0090 and we will do everything we can to help.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.