Bankruptcy Court for Rhode Island cancels second mortgage from client's house

When a person's house value drops very low, it is possible to remove one of the mortgages from the house in the bankruptcy process. The second mortgage or home equity loan becomes discharged and the balance owed is canceled out. Just last week my office successfully wiped out a second mortgage for a client in the amount of $158,000. This was accomplished in a Chapter 13 bankruptcy.

Bankruptcy Court for Rhode Island has program to assist in loan modification

Our office has achieved several successful modifications of clients' mortgage payments, by reducing the monthly payments to more affordable levels. Many people have been taking advantage of this, because when their income decreased, they needed help to keep their home. This has been done in conjunction with the filing of clients' bankruptcy case.

Bankruptcy clients in Rhode Island will own their house with no mortgage in five years.

In the Rhode Island Bankruptcy Court today I obtained approval of a Plan for my clients to reduce their mortgage balance from almost $130,000 to $49,000, and to reduce their interest rate as well. The best part of the Plan is that my clients will only have to pay back the $49,000 at 5.5% interest. At the end of five years, they will own their house free and clear, due to the cramdown provision in the Bankruptcy Code. Many more clients are taking advantage of this Chapter 13 bankruptcy provision to reduce their mortgage balances and make their homes affordable.

Today in Bankruptcy Court I was successful in removing a $47,000 second mortgage from a client's home. There have been many people doing the same thing with the help from their bankruptcy lawyers every week all over the country, including Rhode Island.

NACBA workshop

Attended yearly workshop sponsored by NACBA (National Association of Consumer Bankruptcy Attorneys) in Puerto Rico last week. Great opportunity to learn new developments in bankruptcy law, and interact with bankruptcy attorneys throughout the U.S. to learn new procedures and developments in bankruptcy law, which will be helpful for new clients.