How Are Home Equity Lines Treated In A Chapter Seven Bankruptcy?

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 2 min read

Mortgages certainly are a hot button issue with over 2 million homeowners left needing protection from foreclosure in 2009. So, how is your home equity line treated in a California Chapter 7 bankruptcy?

A home equity line is usually considered the same as a second or third mortgage. Mortgages are secured debts that are tied to your house, and if you don’t pay them, you could be left needing protection from foreclosure. In a California Chapter 7 bankruptcy, almost any debt can be discharged unless it is tied to property that you wish to keep. You cannot discharge a home equity line in a California bankruptcy if it is connected to property you intend to keep.

Luckily, a California bankruptcy lawyer has a different way to help those intending to keep their homes. Your back payments will be put into your plan while you continue to make your payments and stay current with a California chapter 13 bankruptcy. And, in some instances, if you owe more than the home is worth, you may be able to strip the loan and discharge the debt completely. You would be well-advised to contact a California bankruptcy attorney who can help you determine the best course of action to take with your home equity line.

The many options that can be considered for a home equity line is yet another indicator that the bankruptcy code was truly designed to help the average American as much as possible. You will have an easier time getting the exact results you need from a Chapter 7 bankruptcy by finding a California bankruptcy attorney who knows all the ins and outs of the bankruptcy code. The writers of the bankruptcy code made it so that help is available in almost every scenario you can imagine. However, only an experienced Peck Law Group bankruptcy lawyer can truly help you find the perfect solution to your financial situation.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.