Tag Archives: lien stripping
Advantages of Lien Stripping in Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is a procedure for steady wage earners to reorganize their heavy debt by paying off a portion of it over time. A structured repayment plan proposed by the debtor is approved by the court and managed by an appointed trustee. It provides a way to reduce debt burdens, lower monthly payments, […]
Lien Stripping of Second Mortgages in Chapter 13
One of the main reasons consumers file Chapter 13 bankruptcy is to save their homes from foreclosure. With Chapter 13, also known as a wage earner’s plan, the debtor may be able to keep the home by paying off mortgage arrearages over a period of years. However, a homeowner may have more than one loan […]
Using Lien Stripping to Reduce Secured Debt in Chapter 13
In a Chapter 13 bankruptcy, unsecured debts are discharged after successful completion of a partial repayment plan. However, secured debts — those based on mortgages and other liens — remain in force. Fortunately, there is procedure called lien stripping that allows you to convert some mortgage debts to unsecured ones and thus to discharge them. […]
