How Does Lien Stripping Work In Georgia?

Filing for bankruptcy has the potential to eliminate many kinds of debts. However, debts secured by a lien are not always included. Chapter 13 bankruptcy can be used to eliminate or reduce different types of liens.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a reorganization bankruptcy. The goal is to take the individual’s debts and restructure them into something more fair and manageable given their income and assets. Naturally, this includes a way to deal with liens.

Under Chapter 13, some liens can be reduced to the value of the collateral to which it attaches. This ensures that worthless liens do not get included in the reorganization plan.

To determine whether a lien can be stripped or crammed down, it is necessary to establish the value of the collateral and order in which the liens were placed. The first liens to be placed are the first to be paid. In the case of a home loan, the value of the collateral matters because you can only strip or cram down “wholly unsecured” liens, aka liens that are not supported by any portion of the value of the property.

Here’s an example of how lien stripping works:

Let’s say you owe $100,000 on a mortgage on a home now worth $90,000, plus an additional $10,000 from a home equity line of credit. There is no collateral securing that additional $10,000 lien because the entire worth of your home is bound up in that first mortgage. This is a perfect example of a lien that could be stripped with Chapter 13.

Lien stripping is a confusing topic. Fortunately, King & King bankruptcy attorneys can help. Calling us at 404-524-6400 for a free consultation is simply the easiest way to make sure you arrive at a correct understanding of the options available to you in your bankruptcy. 

Can I Prevent Foreclosure by Filing for Bankruptcy in Georgia?

At King & King, we understand that life happens and you may have found yourself in the position of being unable to keep up with your financial obligations. Whatever got you to the point where you are now, our attorneys are committed to helping you come up with a solution keep your home. Bankruptcy protection can be an effective foreclosure defense, one that we have used to help many of our clients avoid losing their homes to foreclosure.

In a Chapter 13 bankruptcy, a repayment plan is created that gives you a way to catch up on past due mortgage payments and unpaid debt without fear that any other legal actions will be pursued. Another benefit of filing for Chapter 13 is that a second mortgage could be "stripped," and you will never have to pay it back.  Ask your King & King attorney about “Lien Stripping” if you have a second mortgage.

If you qualify for a Chapter 7 bankruptcy, we can help you keep your home and wipe out credit card debt, medical bills, and personal loans. If you’re ready to get started, call us today so that one of our experienced bankruptcy lawyers can review your current mortgage situation and advise you as to whether filing for bankruptcy may be right for you. Call King & King at 404-524-6400 or visit us at www.kingandkingattorneys.com for more info.

4 Reasons Filing Bankruptcy In Georgia May Be Right For You

If you are unable to keep up with your bills, bankruptcy can help you achieve a clean slate and peace of mind. While there are definite benefits to bankruptcy, how do you know bankruptcy is right for you?

If you are considering bankruptcy, you should first consult a bankruptcy attorney to assess your unique financial situation, determine whether you qualify to file, and explain the process. Below are a few reasons filing bankruptcy may be your next step to a brighter financial future.

Overwhelming Debt

Unsecured debts include things like medical bills, credit card bills and broken apartment leases. Depending on whether you file Chapter 7 or Chapter 13 bankruptcy, these debts may be eliminated entirely or may be paid back little by little over time.

You risk foreclosure on your home

 A bankruptcy filing can stop you from losing your home and can clear away 2^nd mortgages in certain cases. Bankruptcy can prevent repossession of your assets as well. Motor vehicles, wedding rings and retirement accounts are examples of exemptions.

Your wages are being garnished

Bankruptcy will put an automatic stay on debt collection efforts taking any money out of your paycheck.

You are being harassed by creditors

As soon as a petition for bankruptcy is filed, creditors must stop contacting you immediately.

Bankruptcy will stop the debt collectors from calling, and help you to get the fresh start you need to get back on track.

Call King and King today for a free consultation at 404-524-6400 or visit us at www.kingandkingattorneys.com for more information.

Can Filing Bankruptcy In Georgia Protect Your Home?

Like many states in the U.S. foreclosures have impacted the lives of thousands in Georgia. If you are currently facing foreclosure proceedings or if foreclosure is imminent, King and King wants you to know that there are actions you can take to stop foreclosure and protect your home. By working with our experienced and compassionate Georgia bankruptcy lawyers, you can receive the support you deserve and the assistance you need to navigate through these difficult times.

Bankruptcy is a powerful tool in defending against foreclosure. One of the most important elements of foreclosure defense is the automatic stay. The automatic stay is issued immediately after you file with the bankruptcy court. Providing you with bankruptcy protection, the automatic stay orders all collection activities against you to stop. This means that all foreclosure proceedings will also cease while your bankruptcy is pending.

Using the time afforded by the automatic stay can be invaluable in allowing you to organize your finances. It may also permit the time you need to reach loan modifications with your mortgage lender and to negotiate more manageable and feasible mortgage terms. Payment plans reached in Chapter 13 proceedings can also potentially allow homeowners to make up missed payments and keep their property. Bankruptcy can also be used to completely strip second mortgages.

Time is a factor in foreclosure cases; call King and King today and schedule a free case evaluation so we can explore your foreclosure defense options. Work with experienced attorneys who really care about clients. Contact King and King today at 404-524-6400 or visit us online at www.kingandkingattorneys.com

Will Chapter 7 Bankruptcy Get Rid Of My Debt?

Chapter 7 Bankruptcy is the most common form of filing in the state of Georgia. Chapter 7 is frequently referred to as a "fresh start." It is relatively quick and allows you to discharge your debt to allow you to start again with a clean slate. 

Chapter 7 Bankruptcy cases can remove debts for the following:

· Credit Card Debts

· Medical Bills

· Lawsuits for injuries caused while driving uninsured

· Debts following evictions and/or repossessions

· Lawsuits for breach of contract

· Small or moderate NSF checks

· Garnishments

· Most business debts

Chapter 7 bankruptcy may not discharge some of the following debts; your attorney will help you to understand where you stand.

· Child Support

· Student Loans

· Some Criminal Fines

· Some Taxes

· Debts incurred fraudulently



When your bankruptcy is accepted by the court, your dischargeable debts are wiped clean and you are awarded a clean slate to start anew. Call King and King at 404-524-6400 for a free consultation today or visit us online at www.kingandkingattorneys.com.

Chapter 13 Bankruptcy Can Give You a New Start.

Chapter 13 bankruptcy can put an immediate stop to foreclosure, repossession and creditor harassment. Unfortunately, many Chapter 13 repayment plans are rejected by the court because they are not realistic or properly prepared, leaving debtors without the help they need.

King and King Bankruptcy attorneys have a very high success rate with Chapter 13 confirmations, and have handled thousands of bankruptcy cases. Unlike many high-volume bankruptcy firms that farm out their Chapter 13 cases, we personally prepare every petition. We know there is no substitute for individualized attention and years of experience.

Chapter 13 is also known as a "repayment plan." It consolidates debts into one convenient payment to a bankruptcy trustee, who distributes the money to your creditors. The plan lasts for three to five years, unless your debts are fully repaid in less time. At the end of the plan, any amounts still owing on your unsecured debts are forgiven.

The amount of the payment and the length of the plan are based on a few factors including your monthly take-home pay, your excess income after monthly expenses, and unsecured debts (credit cards, medical bills, personal loans) may be paid as little as zero percent, depending on your finances. Other debts not dischargeable in bankruptcy, such as some student loans, must continue to be paid.

What can a chapter 13 bankruptcy plan do for you?

Stopping home foreclosure

Preventing repossession or getting a repossessed vehicle back

Stopping wage garnishment

Protecting assets not exempt under Chapter 7

Paying off property tax or income tax arrears

In most cases you can keep all of your property.

You can catch up on delinquent mortgage payments.

You can restructure auto loans.

You are protected from creditor harassment.

An added feature of chapter 13 bankruptcy is Lien stripping — You may be able to eliminate a second mortgage on your home. Lien stripping allows you to eliminate secondary mortgage if you owe more on your home than it is worth.

Call King and King Bankruptcy Attorneys to set up a free consultation with an experienced Atlanta, Georgia Chapter 13 bankruptcy attorney. 404-524-6400

Follow King and King Attorneys

Lien Stripping, How We Can Remove Your Second Mortgage Legally.

If your home has lost value during the housing market downturn in Georgia or the Atlanta area and you have more than one mortgage, you have options. In some instances, it may be possible to "strip" your second mortgage. This means it is possible to eliminate your second mortgage or equity line of credit and never have to pay it back.  You do not even need to be behind on your mortgages to qualify for this amazing opportunity. Watch our lien stripping video below for more information.

To find out if you are eligible to strip off your second mortgage, schedule a free initial consultation.  From our offices in Atlanta, Marietta, and Lawrenceville, we help people throughout all of Northern Georgia.
 404-524-6400

Follow King and King Attorneys

Avoid Foreclosure and Get Rid of Debt?

Avoid Foreclosure and Get Rid of Debt?

King and King Bankruptcy Attorneys, 2/21/2013

If you’re facing a foreclosure, you are in trouble and trying to figure out where to turn.  You should select an attorney that is able to stop the foreclosure and help you to manage your other debt as well. When you file Chapter 13 bankruptcy, you are asking the Court to restructure all of your debts.

Many of your debts will be reduced or discharged through bankruptcy. Chapter 13 bankruptcy stops the foreclosure on your home and your other debts will be condensed and combined into a simple monthly payment that will allow you to regain financial stability.

Another benefit of filing for bankruptcy is you will be able to stay in your home during the proceeding, avoiding foreclosure and eviction. This can help reduce the stress of financial crisis you are facing. If you’re facingforeclosure or are behind on your mortgage payments, filing bankruptcy is a way to manage your debt and save your home from foreclosure.

If you owe more on your home than it's worth and have multiple liens, lien stripping may be an option for you. We take the debt that is over the value of the home and have it converted into unsecured debt, which may then be discharged in the bankruptcy proceedings. This is a tremendous benefit to our clients that qualify.

King and King bankruptcy attorneys are dedicated to providing information and guidance to individuals and families that are unable to pay their mortgages. If you have a question regarding foreclosure and bankruptcy in Georgia, please contact us at 404-524-6400 and we can connect you with one of our experienced bankruptcy attorneys for a free bankruptcy evaluation. 

Follow King and King Attorneys

Lien Stripping in Georgia

What Is Lien Stripping?

Lien stripping works within bankruptcy and refers to the process of eliminating your second or third mortgages from your primary residence. 

Which Liens Can I Remove?

Lien stripping allows you to get rid of the “unsecured” liens on your home.  When a mortgage or lien is put on your house, its priority against other liens is determined by when the lien was recorded with your county.  For the most part, the earlier recorded lien has priority over any subsequent liens. 

Here is an example of how lien stripping works in Georgia.  Say you own a house worth $100,000 and you have a $150,000 first mortgage.  You also have a second mortgage of $50,000.  In this situation, you can strip the second mortgage, eliminating it forever, presuming you meet other qualifications of being able to file bankruptcy.

What Happens To Stripped Liens?

Stripped liens in Georgia will receive the same treatment as other unsecured debts, such as credit cards, in your bankruptcy.  These debts usually receive nothing or a small amount and get wiped clean at the completion of your bankruptcy.  After discharge, your lender for the stripped lien will be required to remove its lien from your house.

Lien stripping is complicated.  It’s important to work with an experienced attorney who understands the complexity of bankruptcy law. Call King and King today for a free consultation at 404-524-6400.

Follow King and King Attorneys