Tampa Bankruptcy Attorneys Clark & Washington Discuss Landmark Chapter 7 Lien Stripping Decision

    NORCROSS, GA, December 11, 2012 /24-7PressRelease/ -- Clark & Washington, Tampa bankruptcy experts, discuss the landmark decision of Chapter 7 lien stripping. The team at Clark & Washington argued that under section 509(d), wholly-unsecured mortgage liens could be stripped from homes.

In a landmark decision, Clark & Washington, an Atlanta and Tampa bankruptcy firm, successfully argued that an unsecured mortgage lien could be stripped in Chapter 7 bankruptcy cases. Lorraine McNeal, a Georgia resident, with two mortgages on her residence, one that was for $176, 413, held by HSBC and a second one that was for $44,444, held through GMAC. In her Chapter 7 bankruptcy, it was stated that her home's fair market value of $141, 416 was under the first priority mortgage amount, and therefore, under Section 506(d), the second mortgage was void and McNeal could be 'stripped' of the mortgage.

Initially, the bankruptcy court and the district court both denied the claim that under section 509(d) the second mortgage could be stripped, because a wholly-unsecured mortgage lien, in this case, was not pursuant to section 509(d). However, in the Eleventh Circuit Court of Appeals, Clark & Washington successfully provided evidence that McNeal's wholly-unsecured second mortgage lien could be stripped from her place of residence

Clark & Washington, a Tampa bankruptcy firm with location in Georgia, Florida and Tennessee, understand what individuals go through in bankruptcy, and will defend your right for help with bankruptcy. No matter the situation, the professional bankruptcy team of Clark & Washington will assist you in your financial future.

For more information on Tampa bankruptcy or the legal services available through Clark & Washington, visit http://www.cw13fl.com.

About Clark & Washington

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the southeast. They have locations in Georgia, Florida, and Tennessee. Clark & Washington specializes in personal chapter 7 and chapter 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information visit: http://www.cw13fl.com.

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