Bankruptcy Law/Chapter 7

Advertisement

Expert: - 4/23/2009


Question
After doing  a loan modification and getting better terms i'm considering filing B.K. to discharge other debt do you recommend afriming the mortgage? 2nd question because it is so hard to get the 2nd lien striped should i wait for the new Bk laws (cramdown) before i file..will that law strip the 2n mtg..

Answer
If you already have the loan modification I would advise against doing a reaffirmation agreement because all that will do for you is obligate you to make the payments and in the event of foreclosure, you will owe any deficiency left over.

As for lien stripping, there's no way to answer that question without knowing all the relevant facts, including the current fair market value of your home, the exact amount of liens against it, and what jurisdiction you would be filing in, because some courts will allow lien stripping of wholly unsecured junior liens on a principal residence in a Chapter 7, but most do not.

The proposed new law regarding mortgages is very uncertain as to whether it will be passed, and its terms and conditions may be completely different by the time (if) it becomes law, so there's no way to advise further on that at this time.  In any event, it is only for a Chapter 13 case.

http://www.bklaw.com/

Bankruptcy Law

All Answers

Answers by Expert:

Ask Experts

Volunteer

Mark J. Markus- California Bankruptcy Attorney

Expertise

Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

Experience

Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

    • ©2012 About.com, a part of The New York Times Company. All rights reserved.