Did you know that you can use Chapter 13 to eliminate your second mortgage or home equity line of credit?
As I discuss in this video, the Bankruptcy Code allows us to “strip away” a fully unsecured second mortgage. When done properly, that $20,000, $30,000 or $50,0000 second mortgage can be paid at 1 or 2 cents on the dollar in your Chapter 13.
Obviously, there are exceptions and limitations to the lien strip process. But a surprising number of homeowners do qualify. If you’d like to find out whether your second mortgage or HELOC can be eliminated using Chapter 13, please give me a call. I'd be happy to explain the details and how a Chapter 13 lien strip may apply to you.