Orange County Foreclosure Lien Strip – Chapter 13 Lawyer
As a Chapter 13 lawyer, I see that liens can be a real problem. Generally, a lien is a recorded document that attaches to real property, letting the world know that the owner of the property owes a creditor money. For example, if you don’t pay a contractor for services rendered, the contractor may attached a mechanics lien to your home. The lien will follow the property from owner to owner which can make a piece of property almost impossible to sell. Liens are also very similar to a mortgage whether it be a first or second.Short of paying off the amount owed, the only way to get rid of liens is to file for bankruptcy protection. Even if you do seek the advice of a Chapter 13 lawyer, the lien may still be attached to the property after bankruptcy. That’s why it is very important you seek the advice of an experienced Orange County bankruptcy lawyer before making any financial decisions.
With all that said, an experienced bankruptcy lawyer might be able to eliminate the encumbrance. The key is, as soon as the lien is created, you must file bankruptcy as soon as possible. You only have a limited amount of time to remove any liens so long as certain conditions are satisfied.
If the amount of time has passed, you may still be able to eliminate the encumbrance through a motion to the bankruptcy court known as Lien Stripping. In order to strip a lien from the property, the debtor must demonstrate to the bankruptcy court that there is insufficient equity in the property to satisfy the lien after priority claims are paid. If there is ZERO equity in the property after the first mortgage is satisfied, then the court has no choice but to strip all remaining liens. This includes 2nd mortgages. We have been able to strip, for example, a $150,000.00 2nd mortgage from a distressed property through a Chapter 13 bankruptcy.
Don’t leave your bankruptcy or foreclosure matter to an experienced attorney. For 35 years, the Law Office of Harold D. Thompson as been helping people in Orange County and all of Southern California get the fresh financial start they deserve. Our Chapter 7 and Chapter 13 lawyers will fight for your rights. Call our office today for a free consultation, download our free Ebook or find out how you can become a client right away!
Our Orange County bankruptcy lawyers are proud to serve all of Southern California including: Anaheim, Santa Ana, Fullerton, Irving, Huntington Beach and Newport Beach.
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