Adel, GA Bankruptcy Law Firms & Lawyers

You could certainly try to eliminate this debt through bankruptcy but if the creditor files suit against you in the bankruptcy, which they are allowed to do under 11 USC sec 523, you will likely lost. There may be a strategy you can utilize under Chapter 13 or Chapter 11 of the bankruptcy code (Chapter 11 if the claim is over the debt limits for Chapter 13) that could allow you to make payments on resolving this debt. You are going to need to have the best bankruptcy attorney you can find to represent you - one that has experience with adversary proceedings in bankruptcy.

There are two types of bankruptcy.  Under a chapter 7 liquation, you might lose some of your assets, as you can only exempt up to a certain amount depending on the type property.  Therefore you might want to consider a chapter 13 to avoid losing assets.  This is a reorgainization wherey you will be required to pay some or all of the debt back over a period of time from 36-60 months.    

The current state of the law is that chapter 13's-not 7's-permit a procedure for "removal" of the lien pertaining to a second mortgage that is wholly unsecured. Chapter 7 will discharge your personal liability on the second mortgage, however, it will not remove the lien.