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With Chapter 13, you may be able to strip the second mortgage lien from your home and save your home from foreclosure. Unlike a Chapter 7 bankruptcy that discharges your consumer debt, including your credit card debts, a Chapter 13 bankruptcy allows you to reorganize your debts and substantially pay them off over three to five years.
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The good news for some families is that there are ways to go about stripping a second mortgage. It is no secret that taking on a second mortgage and borrowing against the equity in a home was something the banks encouraged just a few short years ago. While a good idea at the time, the crash of the economy meant that equity melted away.
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