Getting Rid of a Second Mortgage in Chapter 13 Bankruptcy

If your late on your mortgage and you have substantial mortgage arrears then chapter 13 bankruptcy is the best method to straighten out your financial house. A chapter 13 repayment plan allows you to pay back your mortgage arrears in 36 – 60 months. A chapter 13 plan erases the pending foreclosure, removes the mortgage loan default and makes the mortgage loan current.   If your house is under water, a chapter 13 bankruptcy also allows you to erase that second mortgage, even a third mortgage by reducing the creditors claim to the value of the collateral. For example: House: 

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