Haroon Law Group | Bankruptcy Attorneys & Counselors

Dallas-Forth Worth Metro and Surrounding Areas

Call Us Now (972) 359-9274

Do I have a case?

  Click to e-mail

 

Eliminating a Second Mortgage in Bankruptcy

While you may be vaguely aware of the concept of lien stripping, we have found in our practice that very few of our clients understand how it may — or may not — apply in their cases.

A process by which a second or third mortgage or home equity line of credit can be removed and completely discharged in a Chapter 13 bankruptcy is called Lien Stripping. It is particularly useful for clients whose first mortgage exceeds the appraised value of their home.

This concept of lien stripping is relatively new to bankruptcy. Its use in Texas has grown since the collapse of the housing market and the subsequent economic recession. It is an invaluable tool in reducing or eliminating debt and in enabling our clients to create workable Chapter 13 debt repayment plans.

It must be noted that you must successfully complete a Chapter 13 plan for lien stripping to work. Otherwise, you may end up owing the full amount of any second or third mortgage or other debt secured by your home. That is one reason why it is so important to seek the guidance of an experienced bankruptcy attorney early in the process.

We are committed to providing high-quality personal attention and customized solutions. Contact us today for a free, no obligation, and no pressure consultation with a knowledgeable bankruptcy lawyer.

Our offices are conveniently located in Plano , just north of the Dallas TX on I75, Central Expressway @ Park Blvd Exit.

Contact The Attorney Today