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Lien Stripping Lawyer in Michigan

Discharging Debt in Michigan

When a homeowner gets in a financial bind, one of their main concerns is whether or not they will be able to prevent the loss of their house. Filing for a Chapter 13 bankruptcy can have considerable advantages in this regard, especially when there is a second mortgage. Not only will the bankruptcy stop any foreclosure proceedings, it can also result in the second lien being stripped. If you are a homeowner that is considering bankruptcy, speak with a Michigan bankruptcy lawyer regarding your financial situation.

A bankruptcy lawyer can discuss the benefits of Chapter 13 bankruptcy in more detail, including how it:

  • Prevents a foreclosure
  • Enables you to catch up on missed payments over a 3 to 5 year period
  • Can result in the stripping of a second lien

How Lien Stripping Works

When real estate values were increasing, many people with equity in their property took out second and third mortgages. Declining market values resulted in many homeowners owing more than their house was worth. A large percentage of property owners also ended up with higher monthly mortgage payments due to increased interest rates. In a bankruptcy, if you have a second mortgage on your home, the judge can decide to strip the second lien. This is because lenders are only secured up to the value of the property. If you home is worth $150,000 and you have a second lien for $50,000, the second lien is not secured by any collateral and can be discharged as unsecured debt.

My firm, Hensel Law Office, PLLC specializes in bankruptcy cases and has prevented many individuals in dire financial straits from losing their home. There are many strategies that can be employed to avoid a foreclosure. I can explain your options and discuss how a second mortgage can be stripped when filing for Chapter 13 bankruptcy protection. If you are heavily in debt and live in Madison Heights, Royal Oak, Sterling Heights, Clinton Township, Warren or surrounding areas, I will do everything that can be done to protect your assets.

I will also provide you with dedicated and highly skilled legal support throughout your bankruptcy case. Contact the firm today to learn more!

Client Testimonials

  • Sincerest thanks for all of your help in affording me what I consider a real "fresh start."

    “I wanted to give you my sincerest thanks for all of your help in affording me what I consider a real "fresh start". My divorce was unfortunate but definitely a needed change for the better. However, the financial side of things still seemed to keep that past linked, which makes this an enormous weight lifted. I just can't believe the impact it's made on my outlook with...everything.I will be sure to keep your business cards handy to distribute along with highly favorable words of recommendation should the needs arise.Thank you again for your time and professional guidance.”

    Michelle

  • Tom Hensel is definitely the right attorney to call!

    “I was referred to Tom Hensel by a friend. My first impression was not only was Tom professional but he's so kind and caring too. He helped my husband and I through an embarrassing, scary situation and definitely made it more positive one. He guided us through our options and helped us make the right decision for us which ended up being a chapter 7 bankruptcy. Tom was so knowledgeable and helped us throughout the whole process. He never once made us feel uncomfortable or dumb when we had questions. He was also very easy to get a hold of when questions would come up and would always return our calls and emails promptly. I strongly recommend Tom to anyone going through this kind of financial nightmare. Do yourselves a favor and call him right away. He will help you get on the right path again. Our only mistake was waiting so long to call him!! When we in court waiting our turn all the other attorneys referred to their clients as "The debtors" Tom on the other hand acknowledged us by our names. Little things mean a lot and that left a lasting impression with us. Tom Thank You again for all your help!!”

    Stacy S.

  • I greatly appreciate your time and effort.

    “It was a great pleasure and relief working with you through that tough time. I greatly appreciate your time and effort on our case. I will gladly and confidently recommend you to anyone I know facing a tough financial time requiring your expertise.”

    Jay

  • We couldn't have gotten through this difficult process without Tom.

    “We couldn't have gotten through this difficult process without Tom. We evaluated a number of bankruptcy attorneys and found Tom to be the most knowledgeable and compassionate. He takes the time to explain all aspects of the process and answers your questions thoroughly and promptly both in person and via email. He knows the law and ensures that you receive the best treatment possible depending on your particular situation.”

    T & J

  • He is respectful and down to earth with his approach to very complicated legal matters.

    “Hensel Law Office has helped me during a very difficult time in my life. Tom has done a wonderful job with my Chapter 13 case. He always kept in touch with me and explained everything in terms I could understand. I would highly recommend Mr. Hensel to anyone who is facing any bankruptcy filing. He is respectful and down to earth with his approach to very complicated legal matters.”

    Sandra