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The information on this website is for general information purposes only. Nothing on this or associated Pages, Documents, answers or other communications should be taken as legal advise for any individual or situation. The information on this website is not intended , to create and receipt or viewing this information does not constitute, an attorney-client relationship.
The services or benefits provided are with respect to bankruptcy relief under Title 11 of the U.S. Bankruptcy Code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Copyright 2011 by Mark A. Spence, P.A. Florida Personal Injury/ Bankruptcy Attorney
The services or benefits provided are with respect to bankruptcy relief under Title 11 of the U.S. Bankruptcy Code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Copyright 2011 by Mark A. Spence, P.A. Florida Personal Injury/ Bankruptcy Attorney
What is Lien Stripping?
A Chapter 13 plan may propose that the court Avalue@ a debtor=s homestead property in the Chapter 13 case and determine that a second mortgage is truly an unsecured debt which can be stripped from the homestead property and treated in the confirmed plan as an unsecured debt. This process is commonly referred to as lien stripping. Lien stripping is not permitted in Chapter 7 cases. Some debtors, even though they qualify to file Chapter 7 bankruptcy, choose to file Chapter 13 bankruptcy so that they can strip subordinate liens from their homestead properties. In order to determine whether you would be allowed to strip a subordinate lien against your homestead property, there are many factors that need to be considered. Your attorney will need to, among other things, determine the present value of your homestead property and the payoff amount owed on your first mortgage.
A Chapter 13 plan may propose that the court Avalue@ a debtor=s homestead property in the Chapter 13 case and determine that a second mortgage is truly an unsecured debt which can be stripped from the homestead property and treated in the confirmed plan as an unsecured debt. This process is commonly referred to as lien stripping. Lien stripping is not permitted in Chapter 7 cases. Some debtors, even though they qualify to file Chapter 7 bankruptcy, choose to file Chapter 13 bankruptcy so that they can strip subordinate liens from their homestead properties. In order to determine whether you would be allowed to strip a subordinate lien against your homestead property, there are many factors that need to be considered. Your attorney will need to, among other things, determine the present value of your homestead property and the payoff amount owed on your first mortgage.
Mark A. Spence, P.A.
Attorney At Law
6400 Madison Street
New Port Richey, FL 34653
727-846-1777
Bankruptcy
Personal Injury
Attorney At Law
6400 Madison Street
New Port Richey, FL 34653
727-846-1777
Bankruptcy
Personal Injury