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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, but it can also result in the second lien being stripped. If you are a homeowner that is considering bankruptcy, speak with a 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 your 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 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

  • We have and will continue to recommend you to others in need of a fresh start.

    “Dear Tom, my husband and I wanted to express our deepest thanks for the help you gave us during our embarrassing and stressful time. I was very impressed that you returned every phone call in a timely manner. You were able to explain exactly what was going to happen in words that "we" could understand. You answered every question we threw at you. The whole bankruptcy process from start to finish was complete in the time you told us it would take. Your professionalism yet friendliness made the whole experience for us almost enjoyable... almost! We have and will continue to recommend you to others in need of a fresh start.”

    Melissa

  • He always responded quickly and intelligently.

    “Mr. Hensel made a difficult and uncomfortable situation as easy as possible for me. He always responded quickly and intelligently to my questions and never made me feel as if I were bothering him. He explained the unknown aspects of bankruptcy, the court system, and my options in clearly understandable terms. I felt confident that he was handling my case in the best possible manner and in my best possible interests. I feel lucky to have found the Hensel Law Office and I never hesitate to refer others who could use assistance - because I know they will get superior service and help.”

    Kelly

  • Utmost dedication and professionalism.

    “I chose to work with Tom Hensel after meeting with several big name firms in the area. Tom handled my unique situation with the utmost dedication and professionalism. The personal service I received from him made all the difference in my case. My only regret is that I didn't call him first.”

    Craig

  • Tom was the most professional.

    “I researched 3 attorneys before signing with the Hensel Law Office for my bankruptcy proceedings. Tom was the most professional and he explained all of my questions without trying to make a quick buck on me. I would recommend Hensel Law Office to my friends or family going through a similar difficult situation.”

    Jerry

  • Thank you very much for getting us through this very hard time in our lives.

    “I just wanted to thank you very much, for getting us through this very hard time in our lives. You did an excellent job. If anyone I know is in need of a lawyer, we will surely give them your name. Again thanks.”

    John and Linda