The changing face of bankruptcy may surprise some.
According to a new study “The Vulnerable Middle Class: Bankruptcy and Class Status,” by Elizabeth Warren, Harvard Law professor, and Deborah Thorne, Ohio University professor of sociology, members of the middle class are the new face of bankruptcy.
How Can I Avoid My 2nd Mortgage by Filing Bankruptcy?
If you file for Chapter 13 and the value of your home is less than you owe on your 1st mortgage and you also have a 2nd mortgage, Chapter 13 allows you to reclassify your second mortgage (i.e. remove it from your deed and pay it as an unsecured creditor) and pay back only a percentage of what is owed to your unsecured creditors (credit cards and balance of what was a 2nd mortgage).
As an Ohio attorney with more than 15 years of experience in helping clients through bankruptcy, clients often ask me if they should file for bankruptcy or go the debt settlement route. The answer to this question depends on your financial situation.
