How to File Bankruptcy on a Second Mortgage
Seeking bankruptcy relief allows you the ability to protect yourself from certain actions by your creditors. If you're like many debtors, your primary asset is your home. One of the reasons you might consider filing bankruptcy is to protect your home. There are specific procedures in place in all bankruptcy courts through which you can protect your interest in your home by filing bankruptcy on both the first and second mortgage on your property.
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Instructions
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Review your specific options in regard to bankruptcy protection. You can file a Chapter 7 bankruptcy, a case that discharges your obligation to your creditors. A Chapter 13 bankruptcy allows you the ability to pay off your creditors under a court-supervised plan during a two-to-five-year period of time.
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Obtain an appropriate bankruptcy petition (and supporting forms) from the clerk of the bankruptcy court. You can get these materials from the clerk's office, as well as from the court's website.
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Complete the petition-for-bankruptcy form.
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Fill out the matrix of creditors. This is a document that lists all of your individual creditors. Be certain to include the lender that provided you with a second mortgage. In addition to the names of your creditors, you need to include their addresses and the amount you owe to each one. By including the lender associated with your second mortgage, that creditor is included in your case.
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File the completed bankruptcy petition, matrix and supporting documents with the bankruptcy court clerk.
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