Stripping Your 2nd Mortgage May Enable You to Save Your Home
There are certain criteria, discussed below, which must be met if your 2nd mortgage is to be eliminated in a Chapter 13 or an Individual Chapter 11 case. Use your opportunity for a Free Consultation at the Law Offices of Scott W. Spradley, P.A., to see the impact of a bankruptcy case on your home mortgage.
If You Owe More Than Your Home is Worth
The critical factor which would allow your 2nd mortgage to be eliminated through a successful bankruptcy case is whether your 1st mortgage balance is greater than the estimated fair market value of your home. If it is, you could very well have that 2nd mortgage eliminated in your bankruptcy case.
For example, let's say your 1st mortgage balance is $160,000 and your 2nd mortgage balance is $65,000. Let's also say your home carries a current estimated fair market value of $145,000. Using the law which now applies to Florida bankruptcies, the filing of a Chapter 7, a Chapter 13 or a Chapter 11 case could result in the elimination of the 2nd mortgage in this example.
The Benefits of a Fresh Financial Start
Eliminating 2nd mortgages is just one of the many ways a personal bankruptcy case can help individuals get back on their feet and enjoy a Fresh Financial Start. But there are other potential benefits of a personal bankruptcy, even for individuals who will not have a mortgage eliminated. For example, eliminating unmanageable credit card debt, or medical bills or just terminating the collection calls which add stress to one's life, are all potential benefits of a personal bankruptcy case. During your Free Consultation with me, we can review your financial picture and I will help you to assess the best way to improve your creditor relationships, whether outside of or within the bankruptcy process. We recommend that you contact us today for your Free Initial Consultation.