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Mortgage Modification in a Chapter 13 Bankruptcy

By Bill McLeod, Esq.

A recent Massachusetts Bankruptcy Court decision set forth the standard that the majority of Federal Circuits have adopted: a bankruptcy debtor may avoid a wholly unsecured lien on the home. The case involved a debtor who claimed their home was worth $370,000. The balance of the first mortgage was approximately $ 376,000, and a second mortgage, held by American Home, had a balance of approximately $95,000. In the Chapter 13 plan, the debtor proposed to pay American Home as an unsecured credi read more

Full post as published by McLeod Law Offices on March 12, 2008 (boomark / email).