Posted on: 06th Sep, 2010 11:38 pm
I'm debating to do a chapter 13. I was wondering if anyone would know (perhaps there's a bankruptcy lawyer reading this) if a home equity line or line of credit be considered an "unsecured debt" and could be discharged in a bankruptcy?
The home equity line of credit is secured against the property. The property is the collateral for the loan. You can get it discharged when you file bankruptcy. In case of a Chapter 13, you can even strip off this second loan if you don't have equity in your property. To know more about lien stripping, check out the given page:
http://www.mortgagefit.com/bankruptcy/chapter13-lienstripping.html
http://www.mortgagefit.com/bankruptcy/chapter13-lienstripping.html