Eliminating A Second Mortgage And Consolidating Your Debts With Chapter 13
One of the options when you file for Chapter 13 Bankruptcy is to have your second mortgage cancelled and changed to the status of an “unsecured loan.” This allows you to consolidate the payments with the rest of your unsecured debt for a single, more manageable monthly payment.
Once you’ve made your last monthly plan payment, you are allowed to discharge all the remaining unsecured debt. If the value of your house has gone up again, the new equity belongs to you instead of the issuers of your second mortgage. Obviously, filing for bankruptcy is a complex process-one in which the right legal advice and guidance can make the difference between success and failure.
Our firm specializes in helping people with debt problems successfully navigate Rhode Island’s legal system. We can help you eliminate your debt burden and get back on even financial footing. Call us for your free consultation.