Chapter 13 Bankruptcy

In certain situations, a family or individual may have income, but can't find a way to escape their debts. A debt consolidation may be the best option to recover. As opposed to a Chapter 7, a Chapter 13 bankruptcy does not completely eliminate your debt. It consolidates your debt into a single payment which could be reduced. The goal of a Chapter 13 is to give you the opportunity to pay off your debts. It may be possible to reduce the debt owed to a much smaller amount, improving your ability to pay back your debts. If you're ineligible for a Chapter 7, a Chapter 13 bankruptcy could be a viable option.

Removing a Second Mortgage in Chapter 13

In a Chapter 13 bankruptcy, section 506(a) allows your second mortgage to be removied from your home and be treated as unsecured debt. This can only be applied if your home's value is at or below the value of your first mortgage. Contact Mr. Altholz's office today for more information.