Reducing Your Debt in Southern New Jersey
When you bought your car or home, you may have thought you were making a positive investment. However, the current economy has led to damaging depreciation in house values, income and car sales. If your car or house loan is more than it is worth because of depreciation, heavy loans or arrearages (arrears), the law firm of Brenner, Brenner & Spiller can help you find solutions in Chapter 13 bankruptcy, including stripping off a second mortgage or cramming down your car loan.
Southern New Jersey bankruptcy attorney Brad Spiller has more than 30 years of experience helping clients find relief for their overwhelming debt. He is joined by attorney Janet Sozio who brings more than 20 years of legal experience. Together with the rest of our law firm, they are dedicated to helping you find a fresh financial start.
Stripping Off a Second Mortgage
If you have more than one mortgage, and your first mortgage balance is higher than the value of your real estate, you may be able to 'strip off' any mortgage that you can classify as wholly unsecured debt.
For example, if you have two mortgages on your home, and the first mortgage balance is higher than the value of your real estate, you may be able to eliminate the second mortgage. If the value of your house is more than your first mortgage, you will not be able to strip off your second mortgage. The second mortgage must be "wholly unsecured debt" or debt that a mortgage company would not be able to recover by foreclosing on your house.
Cramming Down a Car Loan
If you purchased your car more than 910 days ago (approximately two and a half years), and the amount it is worth is less than the amount you owe, you can reduce the debt to the value of your car.
For example, if you bought a car three years ago and you owe $15,000 on it, but it is only worth $10,000, you may be able to cram your car loan down so that you owe only $10,000.
Other Options to Reduce Your Debt
Stripping off a second mortgage or cramming down a car loan are remedies available in the Chapter 13 bankruptcy process. Chapter 13 is not for everyone. Contact our bankruptcy lawyers to discuss all of the bankruptcy and debt relief options available to you, including:
- Loan discharge through Chapter 7 bankruptcy
- Loan modifications, including loan extension
- Short sales
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
