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ch. 7 bankruptcy and a HELOC(2nd mortgage)

Posted on: 01st Apr, 2010 12:12 pm
[left:60c1fd6130]We had our ch.7 bankruptcy discharged in Feb. of 2009. A HELOC for $50,000 was included in the discharge but they have a deed on my house. My first mortgage is $206,000 and home is worth about $250,000. If we sell our house, pay off the first, pay realtor fees,and pay the rest in a partial payment to the HELOC, can they still persue me for the deficient amount on the HELOC. Is there a statute of limitations on the HELOC in Colorado? And do interest and penalties accrue on the HELOC if I am not makeing any payments?[/left:60c1fd6130]
Hi draaron,

If you haven't reaffirmed your debts when you were in Chapter 7, then you are not personally liable for it any more. After you sell off the property, the second lender will not be able to come after you for the deficient balance. You won't be liable for paying any accrued interests and payments.

Thanks
Posted on: 01st Apr, 2010 08:35 pm
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