Posts Tagged ‘encumbering’

May a homeowner in a Chapter 13 bankruptcy plan cram down the principal balance on a short-term second mortgage encumbering their primary residence and include rent from a rent-a-room tenant as income to support the new mortgage payments?

Facts: The owner of their principal residence encumbered by a short term second mortgage and a rent-a-room tenant paying rent under a leasing agreement files a petition for Chapter 13 bankruptcy protection. The property value is insufficient to...

Read more