QUESTION
Can I file a bankruptcy only on the home equity line of credit?
Asked on Apr 16th, 2013 on Bankruptcy - New Jersey
More details to this question:
On October 2006, my husband and I got a home equity line of credit. He passed away shortly after. I have been paying for it out of my social security check. It is becoming financially hard. Can I file a bankruptcy only on the home equity line of credit?
12 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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No. Secured debt such as that goes through bankruptcy unaffected.
Answered on Apr 22nd, 2013 at 11:32 PM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Sometimes. It depends on if there is equity in the home. You would need to set up a free consultation to discuss more fully.
Answered on Apr 22nd, 2013 at 9:46 PM
No, you must include all your debts.
Answered on Apr 22nd, 2013 at 8:32 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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When you file bankruptcy all debts must be listed, as well as all assets. If you plan to keep your home it would be a waste of a chapter 7 because the lender's security lien would survive the filing of the case.
Answered on Apr 22nd, 2013 at 7:42 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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No, but you may be able to get rid of the second mortgage, depending on the value of house and the debt owed to the first lender. This is called a chapter 13. A chapter 13 bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Apr 18th, 2013 at 11:38 PM
You can file bankruptcy, but you may not be able to eliminate this debt without forfeiting the home. In addition, it may not be a good idea to take this approach for a number of reasons. On the other hand, it could be the smartest thing you could ever do. I simply do not have enough information about your financial circumstances to advise you. A brief consultation with a local bankruptcy attorney could provide you with a answer one way or another & an explanation of your options.
Answered on Apr 18th, 2013 at 9:59 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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All debts must be listed. Whether you can keep certain debts is another question.
Answered on Apr 18th, 2013 at 9:56 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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Why would you want to do that since filing will affect everything
Answered on Apr 18th, 2013 at 12:04 PM
Deborah F. Bowinski
Unfortunately, no. When you file a bankruptcy you must disclose (include) ALL debt obligations. But the other thing to keep in mind is that the home equity line of credit is secured by your home. If you fall into default on that loan the lender will have the ability to foreclose on your home. Wheel her that happens will be a function of the value of the property relative to the balance owed on your first mortgage. The more equity you have in the property, the more likely it becomes that he lender on the home equity line of credit will take action.
Answered on Apr 18th, 2013 at 12:04 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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No. Bankruptcy is an "all-in" proposition. You must include all of your income, all of your debts and all of your assets.
Answered on Apr 18th, 2013 at 12:03 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You should seek the counsel of an attorney, the problem with your plan is that the home equity line will be secured by your residence. The bankruptcy may relieve you of the liability for paying the debt, but it will not change the fact the home-equity loan holder will have a right foreclose.
Answered on Apr 18th, 2013 at 12:03 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No, in New Jersey, you need to have more than one debt in the bankruptcy
Answered on Apr 18th, 2013 at 12:02 PM