Miami Bankruptcy – Chapter 7 and Second Mortgages

A recent client came into my office and wanted to file a Chapter 7 bankruptcy to eliminate or discharge a 2nd mortgage or a home equity line on their homestead property located in Miami Florida.  The client considerable time reading blogs and other bankruptcy websites and came to the conclusion that he could obtain the result he wanted in a Chapter 7 case.

Unfortunately, due to a recent supreme court case, a debtor is not allowed to strip off a junior lien (2nd mortgage or equity line of credit) in  a Chapter 7 bankruptcy.   A debtor can still strip off a junior mortgage in a Chapter 13 bankruptcy in Florida.

If you are thinking of filing for either Chapter 7 or Chapter 13 bankruptcy in South Florida and would like to speak with an experienced bankruptcy attorney then please contact Ofer Shmucher at Shmucher Law, PL by calling 305.741.5553 or 954.309.5559.  We would be happy to provide you with a free consultation to determine if bankruptcy is right for you.

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