What Are the Alternatives to Filing Bankruptcy in New Jersey? Debtors who have faced obstacles [..]
Debt Relief Option Lawyers in Collingswood, NJ
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. Should bankruptcy not be your best option, we can help you consider the possibility of a loan modification to save your home in Central Jersey or South Jersey.
Our New Jersey mortgage lien stripping attorneys have more than 30 years of experience helping clients find relief for their overwhelming debt. We 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 car is worth 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 and cramming down a car loan are remedies available in the Chapter 13 bankruptcy process. Chapter 13 is not for everyone. Our attorneys can help explore all of your debt relief options, including:
- Loan discharge through Chapter 7 bankruptcy
- Loan modifications, including loan extension
- Short sales
Contact Our Bankruptcy Attorneys with Offices in South Jersey
We can help determine the course of action that is needed to help you start on the path to a brighter financial future. Contact our New Jersey debt relief lawyers online or call 856-963-5000 to schedule a free initial consultation to discuss your situation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.