New Help in Bankruptcy for Underwater Homeowners in Florida!

Our Federal Court has come through for homeowners who have second mortgages or Home Equity Loans where their home is not even worth what is owed on the first mortgage!  Homeowners who have such mortgages can get rid of them in Chapter 7 Bankruptcy!

This is called “stripping off” an unsecured lien.  Prior to the recent case of In re McNeal, just decided on May 11, 2012, debtors could only strip off a second mortgage in Chapter 13 Bankruptcy, an option just not viable for many homeowners with little disposable income.

This is the first circuit level court to reach this holding.  But beware: this decision is subject to reversal on rehearing.  If you are contemplating such an action in order to save your home, act now while the Middle District of Florida is bound to follow this new law.  In a month or two, it may be too late.

Call the office of Debra G. Simms for your bankruptcy and debt relief consultation.  We have represented consumers for 25 years.