NC. I owned a business + guaranteed a loan + used home as collateral. Existing 1 mortgage. Will bankruptcy help?

Asked over 5 years ago - Raleigh, NC

I no longer own the business. It was taken over by another member several years ago. Unfriendly take over. I have very few assets. Just my home and two cars (no retirement or other). I really need to keep my home. The primary mortgage is $150,000 and the deed of trust $400,000. The house isn't worth more than $225,000 now.

Attorney answers (1)

  1. Answered . Unfortunately if you owe $150k on your first and the home is worth $225k and you have a second covering the rest then you are not eligible to strip the second lien through chapter 13. You should consider negotiating with the lienholder or filing chapter 7 and walk away from the property.

    Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.

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There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.

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