Bankruptcy doesn't have to be something bad.
It can actually be the start of something good.
Your situation is unique, and it's personal.
Your attorney should be as well.

Chapter 13 Bankruptcy and Stripping Mortgages

When a person has multiple mortgages on a single home, they may be able to have these mortgages cut down to a more manageable status during Chapter 13 bankruptcy. In a process known as stripping a mortgage, a debtor can better handle these debts and may even be able to discharge them by the end of the bankruptcy case.

If you are considering bankruptcy in response to an overwhelming debt situation, we can help you to determine whether this course of action is right for you. Contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000 to discuss what options may be available to you.

How Stripping Off a Mortgage Works

When a person strips off of a mortgage, they reduce that mortgage’s legal status to being an unsecured loan. While mortgages are directly tied to a home’s equity, a stripped mortgage is treated like an unconnected loan that may be ultimately discharged when the bankruptcy process is complete.

In order to do this, a debtor needs to ensure that the following conditions are met:

  • There are second or third mortgages on the home
  • If not, the debtor must have a home equity line of credit
  • The additional loans must exceed the house’s equity entirely

As long as these are the facts of the case, a debtor may be able to strip these additional loans in Chapter 13 bankruptcy. This may allow for debt discharges on those loans when the repayment plan is finished.

Contact Us

Facing Chapter 13 bankruptcy alone can be both a daunting and frustrating task. For help in this challenging time contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000 today.

"When I had my power cut off because I just didn't have the money to pay the power bill, a friend suggested I call Paula Greenway. From the moment I walked in her office I felt like a burden was lifted from my shoulders."
Robin M
"I would just like to say that I was impressed by the staff of Greenway Bankruptcy Law, LLC and their attention to professionalism. They made the bankruptcy process not only pleasant but simple."
Jennifer S.
I can't tell how comforting it is to know your attorney is working on your case. I would and have recommended their service to friend and associates."Ed H.
"I would like to thank Greenway Bankruptcy Law, LLC for the way in which they handled my bankruptcy case."
Robert M.
Schedule an Appointment
In the News

Greenway Bankruptcy Law, LLC
505 20th St N #1220
Birmingham, AL, 35203
Phone: (205) 324-4000
Tuscaloosa: (205) 737-3350
Gadsden: (256) 467-6650

home  |  firm profile  |  practice areas  |  articles  |  faqs  |  blog  |  contact us  |  evaluation  |  sitemap  |  Log in
Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Greenway Bankruptcy Law, LLC 505 20th St N #1220, Birmingham, AL, 35203 | Phone Number: (205) 324-4000