New Bridge Financial

Legal Services

Are you suffering from the stress of mounting credit card debt or facing a threatened foreclosure of your home? Is your lender unreasonably refusing to give you a loan workout? If you are overwhelmed by debt or are experiencing any type of financial difficulty, you may want to consider your bankruptcy options.

When you file bankruptcy, an automatic stay (freeze) immediately goes into effect by law. While the stay is in force it will:

  • Stop harassing calls from creditors and debt collectors.
  • Stop foreclosure of your home dead in its tracks!
  • Stop a credit card lawsuit or credit card judgment collection.
  • Stop a threatened repossession of your car.
  • Stop most other types of creditor action against you or your property.

Our aim is to determine what your needs are and what you are trying to accomplish so that we can help you achieve your goals. Our networks of Attorneys specialize in bankruptcy and debt reduction. They can help you:

  • Eliminate your credit card debt.
  • Save your home or rental property.
  • Obtain a home loan reduction through a Chapter 13 Lienstripping.
  • Lower the balance owed on your car loan.
  • Keep your business and personal assets.

There are 6 types of bankruptcies the most common being a Chapter 7 liquidation and Chapter 13 reorganization. If you are considering your bankruptcy options you may be uncertain if bankruptcy is even the right solution for you, and, if it is, which type of bankruptcy is most beneficial considering your needs and goals.

Bankruptcy is only one of the available solutions in debt relief. Although many individuals may discover that the bankruptcy laws enacted by the federal government will save them from complete financial ruin, there are other cases in which bankruptcy is not the best legal action. With a review of your situation, the legal team can advise you as to what can be done to end the stress and worry that come with overwhelming debt. Other types of debt relief that may be possible can include working out payment agreements with creditors, drastically lowering payments and ending all creditor calls and lawsuits. The most important thing to remember is you must take action. With proper help and information relief is just a decision away.

Home Loan Reduction - Lienstripping

Home Loan Reduction is a process by which we can reduce- or in most cases eliminate- your 2nd mortgage loan or Home Equity Line of Credit (HELOC) through the powerful Chapter 13 "Lienstripping" process. This results in a reduction of your total home loans, making your home more affordable.

Lienstripping in bankruptcy is very different from ordinary loan modification. 2 drastic differences between Lienstripping and loan modification are:

  1. Forced Modification. Lienstripping is accomplished against your lender's will and over its objection. (Loan modification requires your lender's voluntary consent.)
  2. Principal Reduction Lienstripping reduces or eliminates the principal balance of your loan. (Loan modification typically involves rate reduction for a short period.)

The legal process of Lienstripping in bankruptcy involves 2-steps. Step 1: we modify and reclassify your 2nd mortgage loan or HELOC as "unsecured" debt, which means it is not secured by your property. Step 2: the Deed of Trust (lien) that you gave to your lender is "stripped off" (removed) and avoided so that it no longer is a lien against your property.

We then obtain a Bankruptcy Court Order stating that the lien is removed. The Order will be contingent upon you completing your Chapter 13 Plan. As long as you complete your Plan, the lien will be permanently removed from your property.

After the attorney obtains a Bankruptcy Court Order stripping off (removing) the 2nd mortgage loan or HELOC from your property, the 2nd mortgage loan or HELOC is treated as unsecured debt in your bankruptcy, which means that it will be treated the same as your credit card debt.

Depending upon your available disposable income you may have to repay a percentage of your unsecured debt in your bankruptcy case, and since the stripped off 2nd mortgage loan or HELOC is treated as unsecured debt you may have to repay a percentage of that debt. The percentage may be 0%, 25%, 50%, 100%, or anywhere in between 0% and 100%- it all depends on your available disposable income.

Your available disposable income (for purposes of determining what percentage of your unsecured debts you will have to repay) is calculated based upon your household income and your expenses, including actual payments on secured debts, certain IRS standard allowable living expenses, and other allowable expenses. Many of our attorney's clients end up paying between 0% and 25% of their unsecured debts.

If you have attempted to reduce the principal balance of your 2nd mortgage loan or HELOC but are unable to do so or are having difficulty getting a straight answer from your lender, Lienstripping may be the answer you've been looking for.

An experienced bankruptcy attorney can advise you as to what percentage, if any, of your unsecured debts that you would have to repay when you file bankruptcy under Chapter 13.

Once the 2nd mortgage loan or HELOC is removed your total payments will be less and therefore your home will be more affordable.

Contact us today to schedule a free consultation with Bankruptcy Attorney learn how Home Loan Reduction through Lienstripping can benefiit you.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.