QUESTION
Is there a way to petition to have liens removed from my house title that was placed there from credit card companies if I have not paid the debt off?
Asked on Dec 13th, 2021 on Bankruptcy - Pennsylvania
More details to this question:
I am facing foreclosure. I went into the save your home program in my state and they state I have liens on my house from credit card companies and in order to participate in the program I would have to have the holder of the liens agree to go 2nd position on my house. The creditors refused to go into 2nd position so I could not participate in that program to save my house. I was told I could save my house by filing a Chapter 13 bankruptcy which I did. However, my bankruptcy payment is 1083 a month which is a lot of money and would not leave me much money after paying that. I had a meeting with the creditors meeting already and I'm schedule to see the judge in April to see if they will approve the plan. My concern with the plant is that I will have no money for food or anything else every month so I was seeing if there is an option to get the liens removed before then an re-enter the save your home program to avoid the bankruptcy.
1 ANSWER
Bankruptcy Attorney serving Collegeville, PA
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Chapter 13 Bankruptcy is a powerful tool enabling homeowners to cure mortgage defaults and keep their homes. However, as you observed, it does require a financial commitment. The plan payment is determined by several factors, only one of which is the amount of the default.
If you have equity in your home over and above the liens, any such liens, other than the mortgage, must be paid in full during the plan. If you do not have equity, the judgment liens may be crammed down and converted to unsecured debt. If you have no non exempt assets, and your disposable income is only sufficient to cure the arrears, the judgment liens can be removed and discharged following your completion of the plan.
My first thought whenever a client is delinquent is to suggest loan modification. I don’t know if you explored that, but it is a cheaper, easier method of curing the default and managing your cash flow by curing or deferring the default instantly and reducing the mortgage payments.
I trust this has been helpful, and, if you live in the Delaware Valley, feel free to call or email me on a free initial basis.
Best Regards,
Matthew R. Nahrgang, Esquire
35 Evansburg Road, Ste 400
Collegeville, PA 19426
(610) 489-3041 o
(610) 489-3042 fax
nahrganglaw.com
Answered on Dec 13th, 2021 at 9:15 AM