QUESTION

Will a chapter 13 lift the liens and will I be able to save my home?

Asked on Nov 14th, 2013 on Bankruptcy - Washington
More details to this question:
My home has 4 liens against it.
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10 ANSWERS

Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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It depends on the type of liens on your house, the value of your house, and what you owe on your first mortgage relative to the value of the house. For example, if the 4 liens are from court judgments AND the equity you have in the house is less than the available protection you enjoy under state homestead laws, removing all liens will be pretty straightforward. If one or more of the liens are second or third mortgages and the is any equity in your property after subtracting the 1st mortgage, the opportunity to remove these liens will be more limited. If the liens have been imposed by operation of state law, such as a tax lien, HOA lien, mechanics lien, or lien from a public hospital, these liens will not be eliminated by the Chapter 13 process. Whether you will be able to save your home will depend on whether you can afford to pay for it under these circumstances.
Answered on Nov 18th, 2013 at 12:58 PM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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Most probably not. Seek counsel before you compound your problems.
Answered on Nov 18th, 2013 at 12:57 PM

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Bankruptcy Attorney serving Las Vegas, NV
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Possibly. You can lien strip mortgages or involuntary liens on your residence under certain conditions. I recommend you seek competent legal advice in getting the full explanation as to your situation. However, in general if your home is worth less than the senior lien then any junior lien can be expunged.
Answered on Nov 18th, 2013 at 12:56 PM

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Debt Settlement Attorney serving San Diego, CA at Law Offices of Kathryn Tokarska
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Assuming the property is your personal residence, the answer to this question depends on undisclosed facts: such as the value of the home and the current balances of the senior note(s) secured by the property and perhaps some other facts, like whether you filed bankruptcy chapter 7 in the previous 4 years. Generally speaking, in order for a loan secured by a deed of trust on the residence to be removed through a lien strip motion under chapter 13, the particular loan in question must be 100% unsecured. For example let's say the home is worth $400,000. We know this because we obtained an appraisal. There is a first deed of trust for the first loan and the current balance on the first loan is $390,000. There is a second deed of trust for a second loan and the balance on that is $50,000. Then there are two more loans secured by deed of trust. In this scenario. The first loan cannot be stripped. The second loan also cannot be stripped because although it is to a large extent unsecured it is NOT 100% unsecured, in fact it is secured by $10,000. The third and fourth loans potentially can be stripped because each of those loans are 100% unsecured. Since Chapter 13 is too complex for individuals to attempt on their own you will want to hire an attorney. Success rates on chapter 13s by people who filed without an attorney are less than 5%. The attorney will review all your financial information and can advise you on what you can expect in this regard as well as answer important questions you haven't yet considered.
Answered on Nov 18th, 2013 at 12:56 PM

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Bankruptcy Attorney serving Buford, GA at Kenneth A. Parker, PC
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It depends on a couple of factors. Is there any equity in your home? Are any of the liens related to judgments, taxes or home owners associations? Some liens can be avoided in a chapter 13.
Answered on Nov 18th, 2013 at 12:56 PM

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Bankruptcy Attorney serving Oakland, CA at Elkington Law
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You have not provided enough information to give you an answer. Are the liens consensual, such as mortgages, or non-consensual, just as judicial liens, HOA, etc? Also, what is the value of your house? You need to see a bankruptcy attorney. Most of them will give you a free consultation to get your questions answered.
Answered on Nov 18th, 2013 at 12:56 PM

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Debt Settlement Attorney serving Chicago, IL at Law Offices of Daniel J. Winter
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In Chapter 13 it is possible to pay the liens a small amount, and "strip" them off, after the 3-5 year plan is fully paid and completed. However, there are many details that you need to discuss with an experienced bankruptcy attorney. The attorney will need to know how much the house is worth, and how much each lien is for, and when they were recorded. You should gather as much of the documentation you have and call an attorney for a consultation. This is not something that can be done well without an attorney.
Answered on Nov 18th, 2013 at 12:55 PM

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Bankruptcy Attorney serving Los Angeles, CA
3 Awards
A chapter 13 won't strip all of your liens. It will only strip the junior liens if the senior (or 1st) lien balance is over and above the value of your home.
Answered on Nov 18th, 2013 at 12:55 PM

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Deborah F. Bowinski
A bankruptcy filing will never automatically "lift the liens" against any property. Some liens may be avoided through a bankruptcy filing by way of separate motions to the court. Whether that can happen in your case is a question of property value, exemption allowance, and the nature of the liens in question. It is clear from your question that yours is not a simple case. You would serve yourself well to schedule a consultation with an experienced chapter 13 lawyer to review your situation and determine what relief might be available to you through a chapter 13 bankruptcy filing.
Answered on Nov 18th, 2013 at 12:55 PM

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Bankruptcy Attorney serving Seattle, WA at The Law Office of Marc S. Stern
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Without more information, it is impossible to tell. What are the liens, how much is the house worth, is there a mortgage or deed of trust in addition to the liens?
Answered on Nov 18th, 2013 at 12:54 PM

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