Providing Debt Relief Legal Help in the Phoenix Area Since 1994
Chapter 13 bankruptcy offers an invaluable debt relief option regarding second mortgages. This option is often referred to as "lien stripping" and works like this:
- When you bought your home using a first and a second mortgage, or later took out a second mortgage or home equity line of credit (HELOC), the second mortgage or HELOC was secured by the full value of your property.
- If your home has lost value so that it now is worth only the value of the first or primary mortgage (or even less), the other, smaller loan is now unsecured.
- Unsecured debt can be restructured and greatly reduced through Chapter 13 bankruptcy.
If you have questions regarding lien stripping and reducing or eliminating a second mortgage, contact a Phoenix lien-stripping attorney at The Roll Law Office, PLLC. Firm lawyer Guy P. Roll has practiced bankruptcy and debt relief law for more than 15 years, and our firm operates six offices in the Phoenix area.
Lien Stripping Is Also Available Regarding Vehicles
Chapter 13 bankruptcy can also be used to reduce debt on vehicles. For instance, if you bought a car for $35,000 and owe $30,000, yet the car is now worth only $15,000, the court will likely reduce your debt obligation to $15,000 through Chapter 13 bankruptcy proceedings. Vehicle debt reduction conducted in this manner is often referred to as a "cram-down." Cram-downs can also be used for numerous other assets. For more information about lien stripping and cram-downs, please contact our firm.
Contact a Phoenix Lien Stripping Attorney
To learn more about how The Roll Law Office, PLLC, can help you get a financial fresh start, please contact us today to set up a free consultation. We operate offices in Tempe, Mesa, Scottsdale, Glenwood and the White Mountains/Show Low, Arizona, and can be reached at 866-603-1533 or 602-652-2403.
