NJ Bankruptcy Law Firms

66 East Main Street, 3rd Floor
Little Falls, NJ 07424

New Jersey Bankruptcy Lawyer!

With 30+ Years of Proven results!
"I personally meet with You and represent You!"
"I have never Lost a Chapter 7 Bankruptcy Case"
"Experience = Results"
About Ralph A. Ferro Bankruptcy Lawyer

Erase Second Mortgage

Erase 2nd Mortgage

Written and Verified by Ralph A. Ferro, Jr., Esq.

File Chapter 13 Bankruptcy Erase Second Mortgage

You may be able to strip off your second mortgage.

Lien Stripping

Did you know that under certain circumstances there may be an opportunity for you to wipe out your second Mortgage in a Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy Benefit

If your home is “upside down” or “under water” with loan(s) exceeding the current value of your home, and need to file bankruptcy, I can advise you as to whether a Lien strip can be done.

Many debtors have taken out Home Equity Lines of Credit in the past and find that they just cannot keep up with their debts.

Home Equity Lines of Credit (HELOC) were very common in the past.   

Some basic information about mortgages:

  • 1st Mortgage:  You cannot strip off your first mortgage on your residence.  
  • If you fall behind in your mortgage payments, Chapter 13 Bankruptcy affords you the opportunity to pay the arrearages over five years with no interest or penalties.
  • If the 1st mortgage is on a commercial property owned by you individually, there are ways to “cram-down” the balance of the mortgage to be equal to the value of the collateral.
  • Please contact me for more information if you think this situation may apply to you.

In a Chapter 13 bankruptcy, you must continue to keep current with your regular monthly payments on the first mortgage on your residence.

Until you successfully complete your Chapter 13 Bankruptcy Plan, you cannot have your second mortgage stripped off.

When you ask the bankruptcy court to “strip off” a lien, you are asking the court to convert junior mortgages that are not fully secured into unsecured debt.

  • This means that the converted junior mortgage will be removed from the property and treated like any other non-priority debt that is not secured by collateral, such as medical debt or credit card debt.   
  • You will have to pay a part of this unsecured debt through your Chapter 13 plan, but usually you only have to pay a small amount.

As with all filing of Bankruptcy cases, you need an experienced attorney to handle the bankruptcy process.

  • Bankruptcy law is a very specialized field of law and requires expert legal experience.
  • I have successfully removed or stripped off 2nd mortgages for my bankruptcy clips (residential and commercial properties)
  • My over 30 years’ experience in practicing bankruptcy law enables me to provide expert advice and guidance to my clients.
  • I am Board Certified in Consumer Bankruptcy Law by the American Board of Certification. 

Free Bankruptcy Consultation

If you are thinking of filing bankruptcy and you just cannot keep up with your regular monthly payments, call me for a free bankruptcy consultation. 

During our in-person bankruptcy consultation, I will review your financial situation in depth.     You will leave our meeting with my expert advice, you will be knowledgeable on:

  • Is bankruptcy a good solution for your particular situation?
  • If bankruptcy is a good option for you, which bankruptcy is best?
  • Understanding the bankruptcy process.
  • How will bankruptcy help?
  • Requirements and criteria for each type of bankruptcy.

If you are overwhelmed with debt and/or are falling behind in your regular monthly payments to creditors, contact me today.

I look forward to the opportunity to meet with you to determine how I can help you with your debts.

free bk consult
(201) 446-5904 - Ralph A. Ferro, Jr. , Esq
Erase 2nd Mortgage
Strip Liens with Chapter 13 BK

Can a 1st Mortgage be Stripped Off?

Answer:   No

Can a 2nd Mortgage be Stripped Off?

Answer:   Yes

I will meet with you and provide you with expert advice on how to get debt free.

Ralph Ferro File Chapter 13 Bankruptcy

I hope to be able to help you, too.