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Bankruptcy Law/Second mortgage is HELOC

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Expert: Mark J. Markus- California Bankruptcy Attorney - 6/9/2009


Question
Hi, thanks for your time! I just got a modification to my first mortgage but not my second - WAMU is the lender. The second is a HELOC at about 72,000. There is no equity in my home and I can't afford to make the payments on the second. If I do a chapter 7 or chapter 13 - and can prove I have no assets and no equity in my home, can I get the second eliminated? Some of what I've read says yes, some says no. I also have about 10,000. in CC debt to add to it. Thank you!

Answer
You might be able to eliminate the second mortgage lien in a Chapter 13 case if the value of the property is less than the total amount owed to the first mortgage, and if your jurisdiction follows the case law that allows that.  This is known as lien stripping.  You need to discuss this with a bankruptcy attorney in your area.

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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

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