Deciding to file for bankruptcy is a significant step, often taken when financial pressures become too great to handle through other means. It’s a decision that requires understanding the different types available, mainly Chapter 7 and Chapter 13 bankruptcy, and knowing which one you qualify for. Why Do People File for Bankruptcy? Individuals typically file […]
How is Chapter 7 Bankruptcy different from Chapter 13 Bankruptcy?
If you are considering bankruptcy as an option for your financial situation, you should know there are a few options. Chapter 7 bankruptcy and Chapter 13 bankruptcy are two of those options, which we have outlined and compared below. Chapter 7 Bankruptcy Chapter 7 bankruptcy is a liquidation process where a person’s assets are sold […]
What is Lien Stripping?
Lien stripping is a way somebody in Chapter 13 bankruptcy can remove lower priority liens. It’s only allowed in cases where the value of the house is no longer enough to cover the outstanding mortgages on higher priority liens. Lien stripping turns the junior mortgage into an unsecured debt that may eventually be discharged. Basics […]