Lien Stripping Lawyer in Phoenix
Free Your Life from Debt by Removing a Lien
At the Law Office of Harold E. Campbell P.C., we represent clients throughout Arizona in matters related to lien stripping and bankruptcy. A recent development in the law has been the ability to strip off a second mortgage on your family home. This can only be done in a Chapter 11 or Chapter 13 bankruptcy. If the value of your home is less than the value of the first mortgage, there is really nothing for the second mortgage to attach to because the first mortgage has used up all the value in the home. In these situations, your Chapter 13 or Chapter 11 may be used to remove the lien from your home and treat the second mortgage as unsecured debt, just like a credit card.
Why Is Lien Stripping a Considerable Option?
When you strip a lien from your home, a second mortgage becomes unsecured debt, which does not have to be paid in full to be discharged in a Chapter 13 or Chapter 11.
As long as you have paid all of your monthly disposable income (what you have left over after paying your reasonable living expenses) for five years in your plan, the unsecured debt (including the second mortgage) could be discharged – even if it is not paid in full.
Stopping a Foreclosure on Your Home in Chapter 13
Although in a Chapter 13 bankruptcy you cannot modify your first mortgage if you are behind in your payments, Chapter 13 enables you to cure the defaults over a period of 36 to 60 months as long as you keep your regular payments current in the future. This allows you to stop a foreclosure and save your home.
Removing a lien is a complicated legal procedure, and our experienced lien stripping lawyer in Phoenix can explain your options and help you discover what is right for you. Additionally, a Chapter 7 bankruptcy as well as a Chapter 13 or Chapter 11 can remove a judgment lien from your homestead.
Contact the Law Office of Harold E. Campbell P.C. for help when you need it!
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Keep In Bankruptcy