Homeowners Facing Foreclosure
By Wine Country Family Law & Bankruptcy Office, P.C. on July 15th, 2020 in
My clients, a married working couple with three young children, filed chapter 13 bankruptcy when they could no longer afford to pay both their first and second mortgages. Their mortgage was behind by nine months. They are now paying off their substantial mortgage arrears in their five-year bankruptcy plan and are paying nothing to their unsecured creditors (credit card companies). In addition, their second mortgage lien of almost $200,000 was “stripped”, turning the previously secured mortgage debt into an unsecured debt to which no money will be paid.