Chapter 13 bankruptcy has a process called ‘lien stripping’ that may allow certain homeowners to get rid of a second mortgage or home equity line of credit. Lien stripping requires a separate motion with the court. The basic process is as follows, which should be completed with the help of your Raleigh, NC bankruptcy lawyer:
- File Chapter 13 bankruptcy.
- File a motion or other written legal request to explain why the second mortgage from your house should be removed.
- Give creditors proper notice.
- Once the motion is approved, prepare and submit the order to be signed by the judge.
An approved ‘lien stripping’ order directs your second mortgage creditor to strip their claim from your home and the mortgage company must leave you alone until your case is discharged. As you can imagine, this can provide some great relief to a debt problem. Read more from this blog: http://bit.ly/2oKkCjB