Can Mortgage Debt Be Reduced with the Help of a Ft. Lauderdale bankruptcy Lawyer

You might also think of filing for bankruptcy or consulting a Ft. Lauderdale bankruptcy Lawyer as the best answer when you have a mortgage, you have some problems with your home or if you are finding it difficult to pay bills and other obligations. You may or may not opt for bankruptcy to solve these problems but the fact is you can with limited kinds of situations. You cannot definitely run away from your mortgage through bankruptcy but in some instances, your bankruptcy lawyer may help you to eliminate your debts or lessen the sum to a more manageable amount so your home will be affordable to you.

Mortgage Can Be Minimized

It is hard to have your mortgage debts be reduced or eradicated with bankruptcy mainly because the property serves as the collateral for the loan. This implies that if you are unable to pay the loan, the bank will later take your home. It is not just for the bank to provide you the loan in a smaller rate available for the mortgages because the home is your collateral and then permits you to keep it but without pay.  

You have to restate your mortgage debt because usually your home is the collateral, you need to catch up on the payments that you have been behind already and go on paying to keep your home - even if you have filed for bankruptcy.

On the other hand, there is only one exception to this case. This could happen if your home is not really serving as your collateral for the 2^nd mortgage because the whole value of it would be cleaned out to pay the 1^st mortgage. Take this as an example, an individual, owns a house amounting to $275 000. If there is a $275 000 1^st mortgage on the home and $75 000 2^nd mortgage on the home, there is not any real collateral for the 2^nd one. If the lender for the 2^nd mortgage foreclosed because of the non-payment , the said home will be sold and the whole proceeds will directly go to the payment of the 1^st mortgage and will leave the second lender nothing.

A Ft. Lauderdale bankruptcy Lawyer may assist you to get this debt re-identified as unsecured debt since the second mortgaged is not a secure one. This could mean that this could be included in the Chapter 13 re-payment plan and you might be required to pay less than the full amount of the mortgage debt. This process is also known as “lien stripping.”

Winston I. Cuenant, Esq., is an eminent Ft. Lauderdale bankruptcy lawyer who can help in handling filing forbankruptcy. Mr. Cuenant areas of expertise include Fort Lauderdalebankruptcy attorney, French speakinglawyer, Fort Lauderdale Real Estate Litigation attorney, Foreclosure defenselawyer Fort Lauderdale, General Civil litigation attorney Fort Lauderdale and Bankruptcy Law Fort Lauderdale.

Please Contact Our Office +19547664271 for FREE Consultation or visit us on http://cuenantlaw.com/