Chapter 13 bankruptcy provides homeowners with a number of tools they can use to avoid losing their homes to foreclosure. One of those tools is a process called lien stripping, which has the power to eliminate second and third mortgages, which can significantly reduce what homeowners owe and make their homes more affordable again. Here's more information about how this procedure works.
Only Underwater Homes are Eligible
Lien stripping essentially turns a secured debt (e.
Drowning in debt can affect your whole life, from your job to your personal relationships. A bankruptcy can alleviate some of the strain, and knowing what to expect before the process begins can calm you even further. The bankruptcy details described here will inform you about what this process could mean for your present and future.
1. Realize Bankruptcy May Not Erase All Debt
A common misconception from people unfamiliar with bankruptcy is that once you've filed the papers, all your debt is gone.