Lien Stripping Information from Our Riverside Bankruptcy Lawyers

Chapter 13 Bankruptcy Attorneys Inland Empire

Representing individuals and businesses in bankruptcy filings, foreclosures, debt workouts, tax problems, bankruptcy adversaries, and serious civil litigation, throughout Southern California, including the Inland Empire area, Riverside, San Bernardino, Redlands, Lake Arrowhead, Running Springs, Big Bear, High Desert and Victorville.

Stripping liens is an option for Chapter 13 debtors whose liens are unsecured by the value of an asset. Usually an unsecured lien is in the form of a second or third mortgage, and the balance owed to the 1^st or senior mortgage exceeds the value of the home. As an example, if you took out a second mortgage against your home, and the current market value of your home is less than the amount you owe to the 1^st or senior lienholder, the junior lien is treated as an unsecured claim, and may be stripped off as part of a Chapter 13 proceeding, assuming you meet Chapter 13 eligibility rules. If the lien qualifies, stripping the unsecured lien can be an effective way to eliminate debt to allow you to pay back your existing debt based on the agreements in the Chapter 13 repayment plan.

The effect of stripping off a junior lien, turns what was a secured debt, which must be paid in full to keep the property, into an unsecured debt, which will be treated in your Chapter 13 case the same as a credit card or unsecured loan creditor. Keep in mind, in Chapter 13 cases, sometimes unsecured creditors are not paid anything, yet the discharge will totally discharge the debt. Chapter 13 cases may pay anywhere from 0 to 100% of unsecured claims (including the stripped off junior lien).The percentage to be paid is based on what your income and reasonable living expenses are. See the Chapter 13 page for additional particulars.

At J.L. Borrie & Associates, we are bankruptcy attorneys skilled at handling all types of bankruptcy cases. We offer each of our clients the opportunity to have a consultation with an experienced attorney at our firm who has more than 30 years of experience. You won't be meeting with a paralegal or an inexperienced attorney when you contact our firm with a question regarding bankruptcy.

In addition to experience, we take our role as your attorney and advocate very seriously. When you are looking for an attorney to inform you about your options in Chapter 13 bankruptcy, including lien stripping, you want an attorney who is willing to take the time to educate you on the likely outcome of your bankruptcy. We think it is critical to your case to explain the process and the law clearly and concisely and help to prepare you for how your bankruptcy proceeding will go. We won't confuse you with complicated legal jargon.

Types of Liens Eligible to be Stripped During Bankruptcy

In Chapter 13 bankruptcy, voluntary liens, such as mortgages and security liens, may be voided if they are junior liens, and the balance owed to the senior lienholder exceeds the current value of the property to which they are attached. Chapter 13 bankruptcy is commonly used to strip property liens such as lines of credit, second mortgage or third mortgage because these liens more frequently are in essence unsecured, because due to the falling values of real property, it is common for the value of the property to be less than the balance owed to the senior lienholder.

In addition to voluntary liens, judgment liens can also be stripped, and/or if the judgment lien impairs an exemption you would otherwise be entitled to, the lien can be avoided.

Non purchase money liens on vehicles and other property may also be stripped or avoided during the reorganization process in Chapter 13 bankruptcy but only in some circumstances. To understand whether your liens are eligible to be stripped when you file for Chapter 13 bankruptcy, we encourage you to meet with our attorneys. Every financial situation is unique and requires an individual assessment to determine how your bankruptcy action will proceed.

Contact a California Bankruptcy Law Firm

We offer a free conference of up to one hour with an experienced (a minimum of 30 years) bankruptcy, tax problem, foreclosure and debt resolution attorney (not a junior associate or paralegal) who will fully analyze your specific financial situation. They can also educate you on your available options, likelihood of success, as well as the costs and procedures involved in each alternative.

If you would like someone to contact you regarding your problems or concerns, please select the appropriate choice below, or call us at 951-686-6432 and mention that you visited our web site for a free, no-obligation conference.

J.L. Borrie & Associates
4333 Orange Street, Suite 21
Riverside, CA 92501
(also with offices in Running Springs and San Bernardino)

Phone: 951-686-6432
Fax: 877-686-6432