Bankruptcy Can Relieve Second Mortgage Misery | Georgia Bankruptcy
[hsas-shortcode group="" speed="40" direction="left" gap="150"]
Discharge Violations

Bankruptcy Can Relieve Second Mortgage Misery

The front page of the June 7, 2011, issue of the Wall Street Journal reports that almost forty percent of homeowners who took out second mortgages on their homes “are underwater on their loans, more than twice the rate of owners who didn’t take out such loans.” (click here to view the article).

Dealing with constant calls from credit card companies can be extremely difficult.  They call all hours of the day.  Some even try to call you at work.  To get rid of this stress, many Americans have taken out second mortgages on their homes.

The problem with borrowing against equity on your home pay off credit card debt is that you transform unsecured debt (which can be eliminated in bankruptcy) into secured debt (which cannot be eliminated in bankruptcy unless your surrender the collateral……i.e. your house).

What happens when you fall behind on the equity line payment?  The creditor calls you and threatens to take your house away from unless you pay it immediately.  These guys can be worse than credit card companies.

Don’t ever take out a second mortgage on your house to pay off credit card debt without first meeting with a local bankruptcy attorney.  Your bankruptcy attorney will explore all the options and review your income and monthly budget with you.

If you have already fallen into second mortgage misery, the good news in Northwest Georgia is that you may be able to eliminate the second mortgage in a Chapter 13 bankruptcy.  As long your house is worth less than what you owe on the first mortgage, you can wipe out the second mortgage.  However, you must complete your case.  In other words, if you don’t cross the finish line (your case gets dismissed) your second mortgage ghost can resume haunting you.

For more details on how to eliminate a second mortgage, please click on the link listed below.

Other Posts:

1.  What is Chapter 13?

2. What is Chapter 7?

3. How much does it cost to file?

4.  How do I stop a garnishment in Georgia?

5. You can eliminate a second mortgage in bankruptcy.

6. Do I have to go to court if I file bankruptcy?

7.  How do I stop a foreclosure in Georgia?

DISCLAIMER : The information contained on this page is for information only. It is not intended to be legal advice, nor should you make legal decisions based on this information. Please consult with me to see how the law applies to your particular situation. We are a debt relief agency. We help people obtain relief from their creditors by helping people file bankruptcy.