home equity

Since we are lending professionals that answer the questions in this forum, I am going to say you need to ask your bankruptcy attorney this question. We cannot legally give legal advice.

I agree with Michele that you should ask this of your attorney. That said, generally a Home Equity Line of Credit (HELOC) is secured by a deed of trust against the property. If there was no prior deed of trust (or mortgage lien), then by default, the HELOC would be considered the First lien mortgage debt. Also, in most, if not all bankruptcies, you would be forced to agree to keep the payments on the debt current or be forced to turn the home back to the bank. Debt secured by real estate is not dischargeable in Bankruptcy even if the balance owed is larger than the value of the property securing it. Your options are likely to be as stated above, keep paying or lose the home. But do ask your attorney in case rules are different where you live. ~ Bert Carpenter, The LoansA2z Team of Cherry Creek Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California and Washington ~ www.ApplyYes.com 888-889-9950