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Bankruptcy Law/chapter 7 and 2nd trust deeds
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Question
can I dismiss my 2nd trust deed loan, in a chapter 7 bankruptcy filing. I have been told yes and other say no. Can a equity line of equity (either 2nd or 3rd T.D.) also be dismissed with a chapter 7?
When you file for Chapter 7 bankruptcy, it will not remove the liens on your home from either a mortgage or line of equity. This means that if you fail to pay a line of equity or an outstanding mortgage then the lender has a right to foreclose on the home. In a Chapter 7 bankruptcy, you cannot remove your line of equity as a lien on your property. The only way to be able to remove a line of equity or second or third mortgage is to file for Chapter 13 bankruptcy. If the value of your home is at or below your first mortgage then you should consider filing for Chapter 13 bankruptcy to remove the line of equity from your home. Under Chapter 13 bankruptcy, you can file a lien stripping motion, that will treat your line of equity as unsecured debt.
If you have any further questions you can reach me at:
http://www.socaladvocates.com/long-beach-bankruptcy-attorney
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Answers by Expert:
Norma Duenas - California Bankruptcy Attorney
Expertise
Norma Duenas is a California Bankruptcy Attorney representing clients in Chapter 7 and Chapter 13 consumer bankruptcy cases. Norma Duenas is the founding member of Southern California Law Advocates a consumer bankruptcy law firm. For further information you can visit us at: California Bankruptcy Attorney - Riverside, Los Angeles, & Orange County
Experience
Have filed over 350 consumer bankruptcy cases in Orange County, Los Angeles and Riverside. I have worked previously for Macey and Aleman, the largest consumer bankruptcy firm in the country. Currently I am the owner of Southern California Law Advocates, a bankruptcy law firm with offices in Orange County, Los Angeles and Riverside. Law offices is focused on consumer Chapter 13 and Chapter 7 bankruptcy.
Organizations
California Bar Association
American Bar Association
Riverside Bankruptcy Attorney
Education/Credentials
University of California, Irvine, BA in Criminology, Law and Society
California State University, Los Angeles MS in Criminal Justice
University of San Diego, Law School, JD Cum Laude
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