What Happens to Second Mortgage in Chapter 7?
What Happens to My Second Mortgage Loan in a Chapter 7 Bankruptcy?
With the fear of a home foreclosure, most people will opt for Chapter 13 bankruptcy. Sometimes however this is not the most ideal option because it requires a steady income and commitment of repayment over a period of years.
Foreclosure may not be preventable under Chapter 7 bankruptcies. Since you are not responsible for repaying your first and second mortgages, your home may be lost. Generally the contract reads that you must either continue steady payment or the house is taken. If foreclosure is a legitimate concern for you, Chapter 13 may be more appealing.
Chapter 7 bankruptcy may be able to cancel unsecured mortgage debts. This is a positive for many people. Also, if agree to surrender your home to the mortgage lender, this chapter may cancel the debt that you owe on your primary mortgage.
Another aspect of Chapter 7 bankruptcy is that it moves fast. It will generally be tied up within 3 to 6 months which many people find quite convenient. This can give you that extra time to save up money and relocate from your home to another place.
If you are seriously considering filing for Chapter 7 or Chapter 13 bankruptcies, you need the best advice, counsel, and information as possible. That’s why the Law Offices of Omar Zambrano are here and ready to help guide you through your financial stresses.
Omar Zambrano is an experienced practiced bankruptcy lawyer of California, who has experience with all sorts of bankruptcy cases of all different chapter filings.
If you want to end harassing creditors, protect your family from harassing creditors, get your financial situation in order, or keep your house, call us today.
Call the Law Offices of Omar Zambrano today to schedule a free consultation.
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