Chapter 7s and My Delinquent 2nd Mortgage
Many debtors have taken out 2nd mortgages on their homes. If the value of the home is less than the entire 1st mortgage, that makes the total 2nd mortgage balance undersecured.
However, if the balance is not brought current before you file for bankruptcy relief, the 2nd mortgage lender will most likely foreclose on the property after your Chapter 7 bankruptcy. Chapter 7 discharges unsecured debt and you cannot choose which debts you want wiped out. The entire 2nd mortgage balance would be wiped out in the above scenario and the lender could legally foreclose on the property after a Ch. 7 bankruptcy.
In a Ch. 13, you can take the arrearage and put it into one "big pot" along with the rest of your unsecured debt and make monthly plan payments in order to cath up the arrears. You will be paying on this debt for 3-5 years and whatever balance of unsecured debt is left over, it is discharged. At that point, you should be caught up on your mortgage and in some instances you can have the 2nd lien stripped off altogether.
If you have questions about bankruptcy and foreclosure in Florida contact a foreclosure defense and bankruptcy attorney.
Greg Gilbert
Keith Maynard
