Then a second mortgage on my house (80-20) erased in bankruptcy? The house is worth less than the first
I have two mortgages and I thought going bankrupt. I heard that I can get the second loan will be cleared by bankruptcy, because it is ulnsecured debt because that the value of the house is less than completely until the first loan? Is it possible? under Chapter 13 or Chapter 7?
No. no, no. You can not do that. Of course, I hope you did not pay a lawyer for the information ready, and I have no idea where you have heard, but it is 100% not true. NO is an unsecured debt … b / c his house was used as collateral, and that is why the embargo was put in against their home … if you see your title, you will discover the second mortgage is in position second. Whatever the value of your home … Is this not a consideration for the bankruptcy court. You must understand that filing bankruptcy is not as easy as it was. If you just go hog wild and run credit cards b / c they mismanaged their money, you can not claim a More … the days are gone. This is why people hit the door last year to submit the law has changed. You must have a very, very valid reason why not rarely pay their bills. A bankruptcy, if the court allows you to do only allows you to clean up any outstanding payments on your home, but not the loans themselves. If you can not continue to make payments, the court will remove accounts from bankruptcy, and if you lose your house to foreclosure or had the opportunity to act instead. You really need to do more research how they work.
Home Equity Loans & Second Mortgages