First and second mortgages are very different creatures. A first mortgage has priority over any other mortgages. When a lender issues a second mortgage, it recognizes there is some degree of increased risk that should trouble develop, the first mortgagor can foreclose on the property.
When you take out a second mortgage on your home, your creditor performs some calculations. They assess the value of your home, your income, your other debts and the overall real estate market within your area. They do this to determine their exposure to the risk of your defaulting on the loan, and as important, your risk of defaulting on your first mortgage.
The "reform" of the bankruptcy act in 2005 is now looking more like it was less of a reform and more of a return to a creation of virtual poor houses, where debtors who have a low enough income are rendered insolvent to such a degree that they are unable to file for a bankruptcy.
Well, you don't. Federal law, which governs bankruptcy, permits individuals to file bankruptcy on their own, without an attorney. The question you have to ask yourself whether you feel confident with dealing with the process, from completing the necessary paperwork to dealing with the trustee and the federal bankruptcy court to do this without an attorney.
The choice to file a bankruptcy is never easy. You have to consider multiple factors before you file to determine if bankruptcy is the correct solution to your financial woes. If you are feeling buried under the weight of your debts, bankruptcy may present the best way to take care of your debts and regain your economic well-being, but you need to assess some elements that will affect the efficacy of the bankruptcy and your eligibility to file.
Student loans continue to be a problem, both for borrowers and for the economy as a whole. A recent report from the Federal Reserve indicates that while most types of credit are seeing mostly on-time payments, student loans have seen an increasing number of delinquencies.