26 Feb New Rules For Lien Stripping In Minnesota
The Minnesota Bankruptcy Court should approve a new local rule for lien stripping of 2nd mortgages in chapter 13 bankruptcy. The new rule is complex and will make the lien stripping process more costly and cumbersome for debtors and their attorney.
The new rule essentially makes it necessary to craft multiple motions and attend court in order to strip a 2nd mortgage.
The process will force attorneys to charge more to even take a lien stripping case, because the requirements of the new rule are so challenging.
Read more about Chapter 13 Bankruptcy here: http://bolinskelaw.com/minnesota-chapter-13-bankruptcy
If the court requires such a cumbersome procedure to strip 2nd mortgages as part of the bankruptcy process, they should allow extra fees for the attorney drafting the motion.
These fees could then be paid through the bankruptcy plan, allowing debtors access to lien stripping in bankruptcy.
I do not think it is possible to strip a 2nd mortgage once the new rule goes into place, and then only get paid the chapter 13 no look fee.
The new procedure as currently written only puts another burden on debtors looking to save their underwater house through bankruptcy.
No Comments