Many people wonder what happens to a second mortgage or home equity loan in a Chapter 7 bankruptcy.
Every case is unique. Ask a lawyer about your second mortgage and potential bankruptcy filing.
Here's a look at how most mortgages are treated in Chapter 7 bankruptcy.
One important thing to keep in mind about Chapter 7 bankruptcy is that only certain people qualify for Chapter 7 protections.
Specifically, if you make too much money (compared to the other earners with families of your size where you live), you may not be eligible for Chapter 7's protections.
But don't worry: if you cannot file for bankruptcy under Chapter 7, you may be able to file under Chapter 13.
But keep in mind, while Chapter 13 bankruptcy is often used by homeowners in foreclosure, it's not right for all filers. For one, it requires a steady income and committing to a repayment plan of up to five years.
If you'd like some more details about mortgage loans in Chapter 7 bankruptcy, you can take advantage of this opportunity to connect with a bankruptcy lawyer practicing in your area for a free consultation.