Bankruptcy and Second Mortgages
Are you drowning in debt? Do you have a second mortgage taken out on your home? If so, filing for Chapter 13 bankruptcy could change your life.
You may have heard that filing for bankruptcy will erase some of your debts and this is true when it comes to certain types of monies owed. However, when it comes to your home loan, if you can prove that that the current market value of your residence is less than the value of your first mortgage, a judge may get rid of your second mortgage loan.
When this happens, your second loan will be treated as an unsecured loan, grouping it with other unsecured debts that will be erased upon successful completion of your Chapter 13 bankruptcy plan.
While this may come as a relief to those who hold two mortgages, you must be warned that it can be a difficult process and you will need to have your house appraised by a licensed professional to prove that your second mortgage loan is unnecessary.
Do you have questions about how bankruptcy will impact your Texas mortgage payments? Contact the Malaise Law Firm now to receive answers from one of our knowledgeable
San Antonio bankruptcy lawyers.