Bankruptcy and Second Mortgages
When a family’s finances become strained or they need money for other expenses, many people turn to taking out a second mortgage on their home to make things more manageable. Unfortunately, though, these second mortgages often end up being more expensive than the home is actually worth, placing an even heavier financial burden on a family. Chapter 13 bankruptcy can help debtors eliminate the debt they have on a second or even third mortgage, while also helping them gain independence from the creditors who could be putting pressure on them regularly.
Having large amounts of debt on your home in Houston is something our lawyers at the Russell Van Beustring P.C. know can be extremely stressful. Fortunately, there are financial options available to you, from filing for bankruptcy to foreclosure defense.
How Bankruptcy Can Help with Mortgages
Removing debt on a second or third mortgage is not always possible for debtors, but when it is, it can work through demonstrating that there is no value in the house that exceeds prior liens or mortgages. In other words, the burden will be on the debtor to prove that the house is not worth what the second mortgage suggests.
In most cases, the second mortgage will be transformed into unsecured debt, rather than secured debt. This means that Chapter 13 bankruptcy can then pay for the debt.
Learn More about Bankruptcy and Mortgages from an Attorney in Houston
If you or someone you know is experiencing financial distress because of a second or third mortgage, the attorneys at the Russell Van Beustring P.C., can help you. Contact our offices in Houston today at 713-973-6650 to discuss how you might be able to get rid of mortgage debt through Chapter 13 bankruptcy.