QUESTION
Can you keep your home but include an equity line of credit on your home in a bankruptcy?
Asked on Aug 04th, 2011 on Bankruptcy - Florida
More details to this question:
We are thinking about filing bankruptcy. We would like to keep our home, but have a second mortgage/equity line of credit on it. Can we keep our home and file the equity line of credit against our home in the bankruptcy?
2 ANSWERS
3 Awards
If you are filing a chapter 13 bankruptcy and the home is valued at less than the amount of the first mortgage, you can likely strip off the second mortgage and still keep your home. You should speak with an experienced bankruptcy attorney in central Florida. Initial consultations are usually free.
Answered on Aug 19th, 2011 at 2:30 PM
Personal Injury Attorney serving Orlando, FL
Partner at
Benenati Law Firm A Professional Association
3 Awards
Yes, when you file Chapter 13, if your primary home is appraised at below what you owe on your first mortgage, a judge can declare the second mortgage / equity line of credit unsecured and thus, eliminate it after the completion of your Chapter 13 payment plan. Keep in mind, you cannot eliminate the second mortgage in a Chapter 7 bankruptcy. A Chapter 13 is a reorganization of debt through the Federal Government and can vastly improve your situation by addressing your current debt, possibly eliminating the second mortgage of your home, and at least in my Federal District, even modify your first mortgage.
Answered on Aug 10th, 2011 at 4:59 PM