Posted on: 08th Feb, 2010 11:37 am
Hi Jessica,
We're filing for chapter 7 because of a failed business. We took out a home line of credit to finance this failed business. Can we clear this line of credit through chapter 7 filing?
Thanks...
We're filing for chapter 7 because of a failed business. We took out a home line of credit to finance this failed business. Can we clear this line of credit through chapter 7 filing?
Thanks...
Hi,
If you get discharged from bankruptcy Chapter 7, it will wipe off your debt including the home equity line of credit (HELOC). After the discharge, you will not be personally liable for the loan. But as the HELOC is secured by the equity in the property, if you do not pay it off the lender can foreclose the property.
If you get discharged from bankruptcy Chapter 7, it will wipe off your debt including the home equity line of credit (HELOC). After the discharge, you will not be personally liable for the loan. But as the HELOC is secured by the equity in the property, if you do not pay it off the lender can foreclose the property.