| Lansing, Michigan -- Declining home values in | | | | filer’s income throughout the course of a Chapter |
| mid-Michigan have caused home values to depreciate | | | | 13 bankruptcy plan, and discharged of remaining liability |
| or go “underwater,” which means below the | | | | upon completion of the plan of debt reorganization. |
| amount that some homeowners owe. Now there is a | | | | How a second mortgage is stripped varies from the |
| new form of relief available in Michigan Bankruptcy | | | | Eastern and Western District of Michigan, and from |
| Court. | | | | courtroom to courtroom in procedure, but not in the |
| For homeowners with second mortgages, if the value | | | | end result. Some judges will allow the second |
| of your home has declined to less than the total value | | | | mortgage to be stripped in the Chapter 13 bankruptcy |
| of your first mortgage, the second mortgage has, in | | | | plan itself. Some require the value of home to be |
| effect, become an unsecured loan. | | | | proved or disproved at an adversary proceeding. The |
| When filing a Michigan Chapter 13 bankruptcy, which is | | | | most important determining factor remains, however, |
| a repayment plan, the bankruptcy filers usually pay | | | | what the value of your home is at the time of filing for |
| 100% of secured mortgage debts only. If the second | | | | a Michigan Chapter 13 bankruptcy. |
| mortgage is entirely unsecured, it can be | | | | Sometimes, however, bankruptcy is not the answer. |
| “stripped” of its lien on the property and pay | | | | The best solution may be to have your bankruptcy |
| only the same percentage amount as all other | | | | attorney negotiate directly with your creditors, for a |
| unsecured debts, which is usually a smaller percentage | | | | reduced amount, a debt consolidation or repayment |
| than a secured debt. | | | | plan you can live with. |
| Treatment of unsecured debts varies from individual | | | | The law firm of Lansing, Michigan bankruptcy attorney |
| Chapter 13 bankruptcy plan depending upon the | | | | Gene Turnwald, will help you determine the best |
| bankruptcy filer’s income, debts and allowable | | | | solution for your financial situation. If you are seriously |
| expenses. However, unsecured debts may be paid | | | | considering bankruptcy, contact Lansing bankruptcy |
| even as little as 10% or even just 1% under the right | | | | attorney, Gene F. Turnwald, for a free consultation. Mr. |
| circumstances. Which is based of the bankruptcy | | | | |