Wednesday, January 4, 2012

Important New Ruling on Chapter 13 Bankruptcy

A recent ruling from the Bankruptcy Appellate Panel of the 8th Circuit Court of Appeals stated that people who file for Chapter 13 protection can discharge their second or any junior mortgages (called lien stripping) and still keep their house if the value of the house is less than the first, or primary mortgage, reports Jim Buchta on www.grandforksherald.com.  

This is important to the clients of Macey Bankruptcy Law, as those consumers who have a paycheck and who want to continue making their mortgage payments could do so via the financial reorganization that accompanies the Chapter 13 bankruptcy process. A big obstacle for debtors seeking Chapter 13 debt consolidation is that they owe much more than their house is worth and they also have a second mortgage. This has become a common and serious problem following the bursting of the housing bubble some three years ago.

The case has been appealed by the Chapter 13 trustee to the Eighth Circuit Court of Appeals; a decision is likely in early summer 2012. We will keep you up-to-date on this issue that is very important to both the bankruptcy attorneys at Macey Bankruptcy Law and their clients. We will report any new court decisions on our newly-designed, user-friendly website, www.maceybankruptcylaw.com. For your initial complimentary phone consultation, call us toll-free Monday through Saturday and evenings at 1-800-260-2402.

We are here to help with your Chapter 13 or Chapter 7 personal bankruptcy.

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