If you own a home or other substantial assets that you could be forced to give up in a Chapter 7 bankruptcy, Chapter 13 bankruptcy may help you get relief from crushing debt problems. Chapter 13 bankruptcy offers people a measure of flexibility that is not available in Chapter 7. We are the law firm of Michael E. Plummer & Associates. From our office in Covington, we help people across the Tri-State area seek bankruptcy relief. Contact our law firm to learn more about your options.
Covington Chapter 13 Bankruptcy Attorneys
Covington Attorneys Serving People in Cincinnati and the Tri-State Area
Chapter 13 Bankruptcy Can Give You Relief From a Second Mortgage
Under certain circumstances, Chapter 13 bankruptcy can help you remove a second or additional mortgage. If your home is worth less than the balance of your first mortgage, you can discharge the value of your second or subsequent mortgage. For instance, if your first mortgage is worth $150,000, and your second is worth $25,000, but the value of your home is now only $145,000, you can discharge the entire second mortgage in bankruptcy. This process is known as lien stripping and can be very advantageous to homeowners.