Can I Discharge Debt from a Second Home Mortgage?
Millions of Americans are burdened by debt from a second home loan. One little known fact about Chapter 13 bankruptcy is that it can provide relief from a second home mortgage. In limited circumstances, people may strip a second home mortgage with a Chapter 13 bankruptcy.
Here is how it works:
- Through a Chapter 13 bankruptcy, you may strip a second home mortgage lien if the value of your home is less than what you owe on your first mortgage.
- You thus transform your second (or third) home mortgage debt from a secured debt to an unsecured debt. All or part of this debt can potentially be discharged in your Chapter 13 bankruptcy.
- You keep your home — provided you pay the remaining debt on your first loan — AND discharge all or part of your second home mortgage debt.
If you are struggling with debt and want to learn more about bankruptcy, contact B&B Law Group in Lutz, Florida. Our experienced bankruptcy lawyers serve clients throughout the greater Tampa Bay area.
Can I Discharge Debt from a First Home Loan?
Through a Chapter 7 bankruptcy, debt owed on a first home mortgage may be discharged. Debt from a foreclosure sale deficiency may also be discharged. However, bankruptcy will not enable you to discharge debt from a first home mortgage AND keep your home.
What you may do, however, is use a Chapter 7 bankruptcy to discharge other dischargeable debts to put you in a better financial position to pay your monthly home mortgage payment.
Contact Our Tampa Bankruptcy Attorneys
To schedule a free consultation with an experienced bankruptcy attorney, contact B&B Law Group in Lutz, Florida. For assistance, call 813-333-9583 or contact us by e-mail.
